Italy Deflation Rate Confirmed at -0.3%

Consumer prices in Italy fell 0.3 percent year-on-year in May of 2016, easing from 0.5 percent drop in the previous month and matching preliminary estimates. Yet, a rebound in prices of tobacco and unprocessed food was not enough to offset declines in housing, utilities and transport.

Year-on-year, main downward pressure came from prices of transport (-2.9 percent, the same as in April) and housing and utilities (-2.4 percent, the same as in April). In addition, inflation for restaurants and hotels (0.6 percent following 0.9 percent in April), furnishing and household equipment (0.3 percent from 0.4 percent) and miscellaneous goods and services (0.1 percent from 0.2 percent) eased.

In contrast, upward pressure came mainly from prices of food and non-alcoholic beverages (up 0.2 percent, recovering from a 0.1 percent drop in April), alcoholic beverages and tobacco (up 1.4 percent following a 0.1 percent fall in April) and communication (up 1.9 percent following a 0.4 percent rise in April). 

On a monthly basis, consumer prices rose 0.3 percent, rebounding from a 0.1 percent drop in April and in line with preliminary figures. The increase was mainly boosted by prices of tobacco (+2.4 percent), non-regulated energy products (+1.7 percent) and unprocessed food (+1.1 percent).

The harmonized index edged up 0.3 percent on the month but fell 0.3 percent on the year, also the same as in earlier estimates. 

Italy Deflation Rate Confirmed at -0.3%

Istat | Joana Taborda |
6/14/2016 10:55:06 AM