The data for the eurozone's third-largest economy contrasted with Germany which last week reported stronger then expected August inflation, pressured by high crude oil prices.
The figures from 13 Italian cities pointed to annual inflation steady on July's level and also matched the expectations of most analysts.
"The data is in line with expectations regarding both the headline number and the components of the index," said Gianluigi Mandruzzato, eurozone economist at BancaIntesa in Milan.
The transport sector, heavily affected by oil prices, posted month-on-month gains of around 1 percent in several cities, while seasonal price pressure also came from hotels and bars.
"The surge in oil prices pushed up the overall index by between 0.1 and 0.2 percentage points," said Mandruzzato. "That is really quite modest considering that oil prices expressed in euros spiked about 12 percent during the month."
Although oil prices are now declining, they are seen remaining significantly above the levels seen in the second half of last year.
This negative base effect is expected to keep upward pressure on Italian inflation in coming months, analysts said, and Mandruzzato forecast that it would be running as high as 2.7 or 2.8 percent early in 2005.
Monday's Italian numbers follow preliminary August price data from several other eurozone countries. The annual inflation rate ticked up in Germany - the area's largest economy - but was stable in Spain and edged down in Belgium.
Analysts agreed that these numbers do not change the outlook facing the European Central Bank, which is expected to maintain its key refinancing rate stable at 2 percent at its meeting on Thursday and hold rates steady at least until the end of 2004.
In July, the 12-nation bloc's annual inflation rate eased to 2.3 percent from 2.4 percent, still topping the ECB's 2.0 percent tolerance ceiling for the fourth straight month.
But the ECB expects eurozone inflation to fall back below 2 percent next year, and analysts point to some recent signs of weakening in the area's growth prospects.
Italy's city data is based on the country's main domestic price index rather than the EU harmonised one (HICP) on which the European Central Bank bases its interest rate decisions.
On Tuesday, national statistics institute ISTAT is to release preliminary August inflation estimates for the domestic index - using a far larger number of cities - and on the HICP.
On the same day, preliminary eurozone HICP inflation is to be released by EU statistics agency Eurostat. Analysts polled ahead of the most recent national data forecast 2.4 percent.