Italy’s inflation rate remained stable in July 2025, yet the cost of essential goods continued to climb, according to national statistics agency ISTAT. The National Consumer Price Index for the whole nation (NIC), excluding tobacco, recorded a 0.4% monthly increase and a 1.7% annual increase, confirming preliminary estimates and matching June’s annual rate.
However, the annual inflation rate for the “shopping basket” – comprising Food, Household, and Personal Care goods – accelerated significantly. It rose to +3.2% year-on-year in July, up from +2.8% in June (preliminary estimates suggested +3.4%). Prices for frequently purchased goods also increased, moving from +2.0% to +2.3%.
ISTAT attributed the overall inflation stability to opposing price trends among different sectors. Energy goods saw a sharper annual decline (-3.4% from -2.1% in June), while food prices accelerated (+3.7% from +3.3%). Within services, price pressures intensified for Transport-related services (+3.3% from +2.9%) and Miscellaneous services (+2.2% from +1.6%), whereas Recreational, Cultural, and Personal Care services decelerated (+2.7% from +3.2%).
Separately, June 2025 saw a rebound in Italian exports, growing by 4.0% month-on-month and 4.9% year-on-year in value. This surge was significantly driven by purchases from the United States (+10.3%) ahead of new tariffs.
Consumer associations strongly contested the notion of stability. Codacons labelled it a “summer holiday price surge” for Italians, citing definitive ISTAT retail price data. They calculated that the stable +1.7% annual inflation translates to an average extra annual expenditure of €559 for a typical family, rising to €761 for a household with two children. Codacons highlighted dramatic annual price hikes in July specifically for holiday-related services: domestic flights (+35.9%), European flights (+5.5%), ferry fares (+10.9%), car rental rates (+9.9%), domestic holiday packages (+10.3%), vacation homes and B&Bs (+6%), beach clubs and pools (+3.4%), and museums and monuments (+4%). Holiday village and campsite tariffs alone soared by +15.7% in just one month.
Massimiliano Dona, President of the National Consumers Union (UNC), echoed concerns over a “holiday and shopping basket price surge,” dismissing the headline inflation figure as a “mirage.” He noted the shopping basket inflation jumped from 2.8% in June to 3.2% in July, equating to an extra €376 annually for a couple with two children or €261 for an average family. UNC stressed that both essential expenses and holiday costs rose sharply in July.
Assoutenti calculated that Italians face an annual “food squeeze” costing an additional €6.4 billion for the same consumption levels. President Gabriele Melluso stated food and non-alcoholic beverage prices rose +3.9% year-on-year in July, with unprocessed food peaking at +5.1%. This translates to an extra €356 annually for a family with two children.