Italy’s EU-harmonized CPI (standardized inflation measure) fell 1% from the previous month in July, in line with market expectations, while the annual inflation rate held steady at 0.8%, according to preliminary ISTAT data. The monthly decline was largely driven by seasonal summer sales in clothing and other goods, a pattern that analysts had anticipated. Core inflation, which strips out energy and fresh food, also showed signs of easing, pointing to contained underlying price pressures. The reading keeps Italy well below the European Central Bank’s 2% target and supports the view that inflation remains subdued across the Eurozone. For policymakers, the figures offer little reason for near-term interest rate tightening, while for households they suggest stable purchasing power alongside weak wage growth and soft economic activity.