Italy Inflation Rate Revised Down to Over 1-Year Low of 0.8%


Italy’s annual inflation rate decreased to 0.8 percent in May of 2019 from 1.1 percent in the previous month and below preliminary estimates of 0.9 percent. It was the lowest inflation rate since April of 2018, mainly due to lower prices of services related to transport and non-regulated energy.

Year-on-year, cost slowed for transport (1.8 percent from 2.6 percent in April), particularly services related to transport (1.6 percent from 2.8 percent); restaurants and hotels (1.1 percent from 1.5 percent); housing and utilities (3.3 percent from 3.4 percent), with non-regulated energy products prices easing to 2.4 percent (from 3.7 percent) and those of regulated energy products rose 4.3 percent (the same as in April); miscellaneous goods and services (1.5 percent from 1.9 percent) and alcoholic beverages & tobacco (2.1 percent from 2.4 percent). Meanwhile, inflation was steady for food and non-alcoholic beverages (at 0.4 percent); health (at 0.5 percent) and education (at 0.1 percent). 

On the other hand, prices slowed for clothing and footwear (0.3 percent from 0.2 percent) and they continued to fall for recreation and culture (-0.1 percent from -0.2 percent) and communication (-9.4 percent from -9.2 percent). Also, furniture and household equipment prices showed no growth, the same as in the prior month.  

Annual core inflation rate, which excludes energy and unprocessed food, eased to 0.4 percent in May from 0.6 percent in the prior month. Excluding only energy, inflation decreased to 0.5 percent from 0.7 percent. 

On a monthly basis, consumer prices showed no growth in May, after a 0.3 percent gain in the prior month and compared with earlier estimates of 0.1 percent.

The harmonized index of consumer prices is rose 0.9 percent from the previous year (from 1.1 percent in April); and advanced 0.1 percent month-over-month (from 0.5 percent in April).

Italy Inflation Rate Revised Down to Over 1-Year Low of 0.8%


Istat | Agna Gabriel | agna.gabriel@tradingeconomics.com
6/14/2019 9:27:19 AM