Italy Returns to Deflation in February

Consumer prices in Italy are expected to decrease by 0.3 percent year-on-year in February of 2016 compared to a 0.3 percent growth in the previous month while missing market expectations of 0.1 percent fall. It was the first annual fall since April last year, as prices of energy, unprocessed food and services related to transport dropped.

Year-on-year, cost of non-regulated energy products dropped sharply by 8.4 percent (from -5.9 percent in January); prices of unprocessed food fell 1.2 percent (from +0.6 percent); and cost of services related to transport declined by 0.7 percent (from +0.5 percent).

Meanwhile, core inflation rate (excluding energy and unprocessed food) went down to 0.5 percent from 0.8 percent in the previous month.

On a monthly basis, consumer prices dropped by 0.2 percent, the same as in January, mainly due to lower prices of non-regulated energy products (-2.2 percent).

The harmonized index of consumer prices decreased by 0.2 percent with respect to February 2015 and by 0.4 percent compared with the previous month.

Italy Returns to Deflation in February

Joana Ferreira |
2/29/2016 10:21:31 AM