Italy Inflation Rate at -0.1% in March

Consumer prices in Italy are expected to fall by an annual 0.1 percent in March, the same rate as in February. It is the third straight month of deflation as lower petrol prices keep dragging transport and utilities cost down.

Year-on-year, transport cost recorded the highest drop (-2.1 percent), followed by housing, water, electricity, gas and other fuels (-1.4 percent). Additional downward pressures came from communication (-0.9 percent) and recreation and culture (-0.8 percent). 

In contrast, prices of alcoholic beverages and tobacco rose the most (3 percent), followed by education (1.8 percent) and food and non-alcoholic beverages (1.1 percent).

Excluding energy and unprocessed food, core inflation was 0.4 percent (down from 0.6 percent in the previous month); excluding energy, the inflation was 0.5 percent (0.2 percent lower than in February 2015). 

On a monthly basis, consumer prices are expected to increase at a slower 0.1 percent (0.4 percent in February). While cost of non-regulated energy products rose 3.9 percent, prices of fresh vegetables dropped 3.2 percent due to seasonal factors.

The EU harmonised index rose 2 percent month-on-month but fell 0.1 percent year-on-year.

Italy Inflation Rate at -0.1% in March

Istat | Joana Taborda |
3/31/2015 1:08:36 PM