Italy Inflation Rate at 7-Month Low of 1.1% in December

The annual inflation rate in Italy is expected to decrease to 1.1 percent in December of 2018 from 1.6 percent in the previous month. It is the lowest inflation rate since May, amid lower prices of transport and non-regulated energy products.
Istat | Agna Gabriel | 1/4/2019 10:27:22 AM
Year-on-year, prices are set to ease for transport (1.2 percent from 3.5 percent in November), mainly due to lower prices of services related to transport (0.6 percent from 2 percent) and housing and utilities (4.7 percent from 4.8 percent), driven by slowing prices of non-regulated energy products (2.6 percent from 7.8 percent). Additionally, cost is likely to slow for restaurants and hotels (1.1 percent from 1.3 percent) and alcoholic beverages and tobacco (2.7 percent from 3.4 percent).

On the other hand, prices are set to rise faster for miscellaneous goods and services (2.6 percent from 2.5 percent) and furnishing and household equipment (0.2 percent from 0.1 percent). Meanwhile, inflation should be steady for food and non-alcoholic beverages (0.9 percent, the same as in November), with lower prices of processed food (0.7 percent from 1.1 percent) offsetting higher cost of unprocessed food (1.3 percent from 1.1 percent); clothing and footwear (0.2 percent) and education (0.1 percent). 

Annual core inflation rate, which excludes energy and unprocessed food, should went down to 0.6 percent from 0.7 percent in November. Excluding only energy, the inflation is also set to decrease to 0.6 percent from 0.7 percent in the prior month.

On a monthly basis, consumer prices should drop 0.1 percent, after falling 0.2 percent in November, and compared with market expectations of a 0.1 percent gain.

The harmonized index of consumer prices is expected to rise by 1.2 percent from the previous year (1.6 percent November); and to decrease by 0.1 percent month-over-month (0.3 percent in November).

Italy Inflation Rate at 7-Month Low of 1.1% in December