Final July CPI data shows marginal easing in headline inflation while core prices remain steady, complicating ECB policy decisions.
Italy’s annual inflation rate edged down to 2.9% in July from 3.0% in June, matching preliminary estimates. The slight decline was driven by slower price growth in unregulated energy, unprocessed food, and miscellaneous services, though regulated energy and transport services accelerated.
Core inflation held steady at 1.6%, with goods prices easing to 3.2% and services rising to 2.7%. The data underscores persistent price pressures in the eurozone’s third-largest economy, contrasting with hotter inflation in Germany and Spain.
The European Central Bank faces a balancing act as Middle East tensions add uncertainty, potentially influencing a September rate decision.