Italy’s EU-harmonized consumer price index was 2.9% year on year in July, according to ISTAT, holding steady from the prior month and in line with forecasts, while the index fell on a monthly basis because of seasonal summer sales. Core inflation excluding energy and fresh food was broadly stable, indicating that underlying price pressures were not accelerating even as energy costs remained volatile. The reading leaves inflation above the European Central Bank’s 2% target, suggesting policymakers may retain a cautious approach on interest rates rather than respond to signs of renewed price pressure.