Italian inflation rises to 2.8% in July, reinforcing Bank of Italy's 3.1% full-year forecast

Consumer prices accelerated in July, aligning with the central bank's warning that energy costs and sticky expectations are keeping inflation above the ECB target.

By Handelsavisen Newsroom · Automated 2026-07-31 09:23 UTC · 1 min read

Italian consumer prices rose 0.2% month-on-month in July, pushing the annual inflation rate to 2.8%, according to data reported by Nyhetsbyrån Direkt.

The uptick marks a continuation of the upward pressure on prices that has characterized the Italian economy in recent months.

1%. The central bank cited rising consumer price expectations and the lingering impact of the war in Iran on energy costs as key drivers behind the persistent price growth.

The latest figures validate the Bank of Italy's recent decision to upgrade its full-year 2026 inflation forecast to 3.1%.

The central bank cited rising consumer price expectations and the lingering impact of the war in Iran on energy costs as key drivers behind the persistent price growth.

With annual inflation now firmly above the European Central Bank's 2% target, the data underscores the difficulty in achieving a rapid return to price stability in the eurozone's second-largest economy.

The inflationary pressure is also evident in the housing market, where the average interest rate on new mortgages in Italy rose to 3.96% in May, reversing a previous downward trend.