Italy Slides Deeper Into Deflation

Consumer prices in Italy decreased by 0.5 percent year-on-year in April of 2016, following a 0.2 percent fall in the previous month and compared to preliminary estimated of 0.4 percent drop. It is the biggest drop in consumer prices since January of 2015 mainly due to lower energy cost. On a monthly basis, prices went down 0.1 percent.
Istat | Yekaterina Guchshina | 5/13/2016 10:58:04 AM
Year-on-year, regulated energy products dropped 6.4 percent, to which contributed both natural gas (-9.9 percent) and electricity (-1.9 percent). 

Also, cost of food and non-alcoholic beverages declined by 0.1 percent, following 0.1 percent drop in the previous month; and transport prices decreased by 2.9 percent, compared to 3.1 percent fall in the previous month.

Additional downward pressure came from: housing and utilities (-2.4 percent); and alcoholic beverages and tobacco (-0.1 percent). In contrast, prices of restaurants and hotels (+0.9 percent), health (+0.3 percent), recreation and culture (+0.3 percent), furnishings and household equipment (+0.4 percent) and clothing and footwear (+0.5 percent) rose.

Annual core inflation rate (excluding energy and unprocessed food) was recorded at 0.5 percent, down from 0.6 percent registered in March.

On a monthly basis, consumer prices declined 0.1 percent, compared to 0.2 percent rise in the previous month and worse than first estimates. Cost of housing and utilities fell 2.4 percent and communication decreased 0.6 percent.

Harmonised consumer prices decreased by 0.4 percent year-on year while grew 0.2 percent on the month.

Italy Slides Deeper Into Deflation