Italy’s Inflation Rate Stable At 1.7% In July: Istat Data

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Italy’s inflation for the month of July 2025 remained steady at 1.7 percent, according to the provisional data released on Thursday by Istat, which is short for the Italian National Institute of Statistics. This means that, on average, the prices of goods and services in Italy in July were 1.7% higher than they were in the same month last year.

Even though this number did not change from the previous month, there were still some notable changes in prices for everyday items that many families in Italy buy regularly. Let’s take a deeper look at what the report revealed and what it means for people living in Italy.

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What Is Inflation and Why Does It Matter?

Before we go further, it’s important to understand what inflation means. Inflation is the rate at which prices go up over time. If the inflation rate is high, it means you have to pay more money to buy the same things you used to buy before. On the other hand, if it’s low or stable, prices are not rising quickly, which is good for most people because their money holds its value.

In July 2025, the inflation rate in Italy was 1.7%, which is the same as it was in June. This shows that prices are not rising too fast, which may be seen as a positive sign for consumers and the economy.

Consumer Prices Rose by 0.4% in One Month

According to Istat’s report, the overall consumer price index (CPI) — which is a measure of the average change in prices for goods and services — increased by 0.4% from June to July. This means that people in Italy paid 0.4% more for things in July compared to June.

Even though this increase might not seem large, it still affects the daily budgets of households, especially those who are already trying to manage their expenses carefully.

"Shopping Trolley" Index Increased by 3.4%

One of the most important parts of Istat’s report is the “shopping trolley” index. This index keeps track of the prices of items that families buy often, such as:

• Food items like bread, milk, fruits, and vegetables

• Household goods like cleaning products and kitchen supplies

• Personal care products like shampoo, soap, and toothpaste

In July, the “shopping trolley” index rose by 3.4% compared to the same month last year. This is a sharp increase from 2.8% in June.

This means that the cost of essential everyday items has gone up more than the general inflation rate. For example, while the overall inflation rate was 1.7%, the prices of food and other essentials that people use daily went up by double that amount — 3.4%.

This rise puts more pressure on family budgets, especially for lower-income households and pensioners, who spend a larger share of their income on basic needs.

What Is Core Inflation and Why Is It Important?

Istat also talks about something called core inflation. This is a special way of looking at inflation by excluding the prices of energy and unprocessed food. These items tend to change prices more often, so core inflation gives a clearer picture of long-term inflation trends.

In July, the core inflation rate remained at 2.0%, the same as in June. This means that, even when energy prices and raw food prices are taken out, the cost of other goods and services continued to grow at a moderate pace.

Another related measure is inflation excluding energy, which removes just energy prices from the calculation. This rate increased slightly to 2.2% in July, up from 2.1% in June.

Why Are Energy and Food Excluded in Core Inflation?

Prices of energy (like gas and electricity) and unprocessed food (like fruits and vegetables) can go up and down quickly because they depend on external factors like:

• Weather conditions

• Political issues in oil-producing countries

• Global supply chain problems

• Seasonal changes

By removing these items, core inflation focuses more on stable and predictable price changes, helping experts make better economic decisions.

What Does This Mean for Italian Families?

The latest inflation data shows that Italy’s inflation rate is under control, but prices of basic items are still rising faster than average. While the overall 1.7% inflation is not considered too high, the increase in the “shopping trolley” index to 3.4% is something families will feel directly when they go shopping.

For example:

• A family might spend more on groceries than they did just a few weeks ago.

• The price of toothpaste, cooking oil, or detergent could be higher than usual.

• People with fixed incomes, such as retirees, may find it harder to stretch their money.

So, even though the numbers look “stable” from a national point of view, real-life experiences of consumers may vary based on what they buy most often.

What the Experts Are Saying

According to Italian media reports, especially from ANSA, the official news agency of Italy, the inflation report reflects a careful balance in the country’s economy. While price increases have slowed down compared to last year when inflation was much higher across Europe, some sectors like food and personal care still show persistent price pressure.

Economic analysts believe that this stability in headline inflation could give some relief to the Italian government and the European Central Bank. A steady inflation rate means that interest rate changes may not be needed urgently, which is good news for people with loans or mortgages.

Looking Ahead: What to Expect Next?

Although July’s inflation rate remained steady, experts say that economic uncertainty still exists due to global events like:

• Ongoing energy market volatility

• Climate-related disruptions to farming

• Geopolitical tensions in oil-rich regions

• The effects of rising interest rates across Europe

If prices of food and basic items continue to climb, it may cause more concern among households. Istat will release final inflation figures later this month, and those numbers may give a clearer picture of what’s really happening in the economy.

Summary of Key Data from Istat’s Report

• Annual inflation rate: 1.7% (unchanged from June)

• Monthly price increase (June to July): 0.4%

• Shopping trolley index (food, essentials): 3.4% (up from 2.8%)

• Core inflation (excluding energy and raw food): 2.0%

• Inflation excluding energy: 2.2% (up from 2.1%)

The July 2025 inflation report from Istat shows that Italy is in a phase of price stability, but the rising cost of daily essentials is still a challenge for many. While the overall picture may look calm on the surface, real life for many families tells a slightly different story.

If these trends continue, Italian households will need to budget more carefully, and policymakers may need to consider targeted help for those affected the most. Watching inflation numbers month by month will remain important for everyone — from families to businesses to the government.