The animal is believed to have been spooked by thunder from summer storms.
With its large rack of horns, it sent cafe patrons scrambling as it raced through Bolzano, about 50 miles south of Innsbruck on the Austrian border.
As it became increasingly agitated, the deer leapt over a table and chairs at a cafe.
The 24-stone deer overturned potted plants and destroyed several shop-front stands.
It also smashed a window shop window, as it led authorities on a chase through the town.
Several police officers, hunters and the local fire brigade tried for two hours to catch the animal, without success.
The two people hit by the animal suffered cuts and bruises after being butted and knocked over.
It was eventually shot dead in a car park by local forestry officials.
Heinrich Erhard, director of the forestry commission’s hunting and fishing department, said: ”We had no choice but to shoot the deer. I reflected on it for a while but I had no option.
”I did consider using a tranquiliser gun but we would have had to wait and there was no time it would have taken us 90 minutes to get hold of them and there were already two people injured.
”The problem was that the deer was already suffering, it had an eye injury, probably caused by a hunter in the forest.”
However animal rights groups questioned the killing. Maria Teresa Tomada, a local opposition councillor, said:”There is a budget set aside of 5 million euro a year surely there must be a few euros to keep some tranquiliser guns locally.”
