Italy Inflation Rate Confirmed at 1-Year Low in December


The consumer price index in Italy increased 0.9 percent year-on-year in December of 2017, the same pace as in the previous month and matching the preliminary estimate. The annual inflation rate stood at its lowest level since December 2016, mainly led by a slowdown in prices of food, especially unprocessed food and housing. Meanwhile, cost advanced faster for transport.

Year-on-year, prices rose at a softer pace for food & non-alcoholic beverages (1.5 percent vs 1.9 percent in November), of which unprocessed food (2.4 percent vs 3.2 percent) while those of processed food including alcohol were steady (at 0.8 percent). Also, cost eased for housing & utilities (1.9 percent vs 2 percent), as a result of lower price pressure of non-regulated energy products (4.4 percent vs 5 percent). Meantime, the inflation rate remained steady for restaurants & hotels (at 1.1 percent); miscellaneous goods & services (at 0.6 percent); health (at 0.1 percent) and recreation & culture (at 0.5 percent).

On the other hand, prices were higher for transport (2.8 percent vs 2.7 percent), in particular cost of services related to transport (2.8 percent vs 2.2 percent).

Annual core inflation rate, which excludes energy and unprocessed food was 0.4 percent, the same as in November. Excluding only energy, the inflation stood at 0.6 percent.

On a monthly basis, consumer prices inched up 0.4 percent, after falling 0.2 percent in the previous month and in line with the preliminary reading.

The harmonized index edged up 0.3 percent on the month (from -0.2 percent in November) and increased 1 percent on the year (from 1.1 percent in November).

Italy Inflation Rate Confirmed at 1-Year Low in December


Istat | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
1/16/2018 9:50:00 AM