Italy Reports Deflation For The Fourth Consecutive Month


Italian consumer price index declined by 0.1 percent on annual basis compared to the flash estimate of 0 percent as energy cost declined further.

It was for the fourth consecutive month that the All items index recorded a decrease on annual basis. This was due to the persistence of the marked decline of prices of Energy (-6.4%, from -6.5% in March 2015) and to the decrease on annual basis of prices of Services related to transport (-0.6%, from +0.5% in March 2015), of Services related to housing (-0.2%, from -0.1% in the previous month) and of Services related to communication (-0.1%, from +1.0% in March 2015).

Indeed, excluding energy, the inflation was stable at 0.6%, while excluding energy and unprocessed food, core inflation was 0.3% (0.1 lower than in March 2015).

On the monthly basis, the index rose 0.2%. The increase was mainly due to the rise - on which seasonal factors, as Easter holidays, had an impact - of prices of Services related to recreation, including repair and personal care (+1.1%) and of Services related to transport (+1.0%); this increase was partially balanced by the monthly decline of prices of Regulated energy products (-2.4%).

The annual rate of change of prices of Goods was -0.5% (from -0.6% observed in March 2015) and the annual rate of prices of Services was +0.3% (down from +0.5% in the previous month). As consequence, the inflationary gap between Services and Goods decreased by 0.3 percentage points with respect to March 2015.

Prices of Grocery and unprocessed food held steady on monthly basis and rose by 0.8% on annual basis (the same rate registered in the previous month).

In April 2015, the Italian harmonized index of consumer prices (HICP) rose by 0.4% compared with the previous month and declined by 0.1% with respect to April 2014 (the flash estimate was 0.0%), down from 0.0% in March 2015. The monthly increase was also due to the final end of the winter sales of Clothing and footwear (+3.4% with respect to March 2015), which are not taken into account in the national index NIC.

Core inflation measured by Italian HICP was 0.4%, down from 0.6% in March 2015; excluding energy, food, alcohol and tobacco, the inflation was 0.3% (0.1 lower than in March 2015). Excluding energy, the inflation was 0.6%, down from 0.7% in the previous month.

Italy Reports Deflation For The Fourth Consecutive Month


ISTAT | anna@tradingeconomics.com
5/13/2015 11:16:45 AM