Italy's inflation rate slowed down in July, as price pressures eased for unprocessed food products, energy and services, with core inflation dipping below the threshold of 6%, official data showed on Thursday. Core inflation (net of fresh food and energy) was at 5.6% year-on-year on the EU-harmonised consumer prices (HICP) index in July, down from 6.1% a month earlier, national statistics agency ISTAT said. The reading is the first below 6% since October 2022, when it stood at 5.7%.

"The dynamics of inflation, still strongly influenced by the development of energy prices, also reflects the yearly slowdown in the prices of processed food products" and services, ISTAT said in a note. ISTAT also revised down its preliminary estimate for HICP to minus 1.6% on a monthly basis and 6.3% in yearly terms, with the latter down from 6.7% in June. The initial reading pointed to a 1.5% fall month-on-month and a 6.4% rise year-on-year. The main domestic price index (NIC) was flat on the month and increased 5.9% annually, declining from a 6.4% annual rise in June. (Reporting by Enrico Sciacovelli and Alberto Chiumento, editing by Antonella Cinelli and Bernadette Baum)