FX.co ★ Italy’s Core Inflation Eases Slightly in July as CPI Ex Tobacco Slips to 2.8%

Italy’s underlying inflation edged down in July, with the Consumer Price Index excluding tobacco (CPI Ex Tobacco) recording a year-over-year increase of 2.8%, compared with 2.9% in June 2026. The latest data, updated on 12 August 2026, point to a modest cooling in core price pressures.

On a year-over-year basis, the “actual” July figure measures price changes relative to July a year earlier, while the “previous” June reading reflects changes compared with June a year earlier. The slight decline from 2.9% to 2.8% suggests that, excluding the volatile tobacco component, Italy’s inflation dynamics may be stabilizing, albeit still running above levels typically associated with price stability.

For policymakers and markets, the July reading will be watched as a signal of whether Italy’s core inflation is gradually easing or merely pausing after recent pressures. The marginal slowdown could influence expectations around the broader euro-area inflation outlook and the trajectory of monetary conditions going forward.