Italy inflation rate slows to 2.8% in July

Preliminary estimates from Istat indicate that Italy's annual inflation rate slowed to 2.8% in July, down from 3.0% the previous month. This deceleration was primarily driven by a decrease in the prices of unprocessed food and unregulated energy, although prices for processed foods and regulated energy saw increases.

Core inflation, excluding energy and fresh food, remained stable at 1.6%. Meanwhile, inflation excluding only energy goods slowed from 1.9% to 1.8%. The price of goods fell from 3.3% to 3.1%, while service costs remained stable.

Economic sentiment showed improvement in July. The consumer confidence index rose from 92.4 to 94.2, and the business confidence indicator increased from 95.3 to 95.6. Within the business sector, confidence grew in manufacturing and services, though it declined in the construction industry.