Italian Inflation Rate Disappoints in December


Consumer prices in Italy are expected to increase by only 0.1 percent year-on-year in December of 2015, the same as in the previous month while missing market expectations of 0.2 percent growth. While prices of recreational, cultural and personal care rose further and energy cost fell at a slower pace; prices of services related to transport dropped sharply dragging down inflation.

Year-on-year,  prices of recreational, cultural and personal care rose 0.9 percent, up from 0.6 percent growth in November, while prices of non-regulated energy goods dropped 8.8 percent, easing from a 11.2 percent fall. Meanwhile, prices of services related to transport declined 1.7 percent, after growing by 0.6 percent in November while those of unprocessed food increased at a slower 2.2 percent from 3.2 percent increase, holding back the increase in the overall index.

Meanwhile, core inflation rate (excluding energy and unprocessed food) went down to 0.6 percent from 0.7 percent in the previous month.

On a monthly basis, consumer prices showed no growth, following a 0.4 percent drop in November. While prices of non-regulated energy (-1 percent) and unprocessed food (-0.7 percent) fell the most, cost of durables (+0.4 percent), recreational, cultural and personal care (+0.3 percent) and services related to transport (+0.3 percent) rose.

Harmonised consumer prices increased by 0.1 percent year-on year but declined by 0.1 percent on a monthly basis.

Italian Inflation Rate Disappoints in December


Istat | Joana Ferreira | joana.ferreira@tradingeconomics.com
1/5/2016 10:43:47 AM