Italy Inflation Confirmed at 0.5% in February


Italian inflation rate rose at its lowest pace in four years of 0.5 percent in February of 2014, confirming the preliminary estimates. The slowdown was mainly due to volatile components, such as unprocessed food and energy.

Prices of goods fell to -0.1 percent (from +0.3 percent in January), while the annual rate of services cost rose to 1.2 percent (+1.1percent in the previous month). Cost of grocery and unprocessed food rose by 1.0 percent on annual basis (down from +1.3 percent in January 2014) and energy prices dropped further by 3.3 percent (-2.2 percent in January).

On a monthly basis, prices fell 0.1 percent, mainly due to a drop in cost of fresh vegetables and fresh fruit (respectively -4.4 percent and -0.7 percent compared with January 2014) ? on which seasonal factors had an impact ? and to prices of non-regulated energy products (-0.9 percent). A 0.7 percent fall in prices of services related to communication also had a downward impact.

Core inflation was stable at 1.0 percent. Excluding only energy, the inflation was stable at the same value observed in January 2014 (+1.0 percent).

The EU harmonized CPI decreased by 0.3 percent compared with the previous month and rose by a revised 0.4 percent with respect to February 2013 (the flash estimate was 0.5 percent). 

Italy Inflation Confirmed at 0.5% in February


Istat | Joana Taborda | joana.taborda@tradingeconomics.com
3/13/2014 10:00:01 AM