Italy Inflation Rate Slows To 5-Month Low In June


Italian consumer prices are expected to increase by 1.2 percent year-on-year in June 2017, easing from a 1.4 percent gain in the previous month and missing market expectations of 1.4 percent. It was the lowest inflation rate since January, as prices rose at a slower pace for food and transport.

Year-on-year, prices rose at a slower pace for food and non-alcoholic beverages (1 percent from 1.9 in May), transport (3 percent from 3.7 percent), health (0.2 percent from 0.3 percent), and recreation and culture (0.3 percent from 0.5 percent). Also, upward pressure came from: Restaurants and hotels (2.1 percent from 1.9 percent in May); housing, water, electricity, gas and other fuels (inflation steady at 3 percent); miscellaneous goods and services (1 percent from 0.9 percent); and clothing and footwear (inflation steady at 0.4 percent).

Annual core inflation rate, which excludes energy and unprocessed food, rose to 0.9 percent from 0.7 percent in May. Excluding only energy, the inflation edged down to 0.9 percent from 1 percent in the previous month.

On a monthly basis, consumer prices fell 0.1 percent after decreasing by 0.2 percent in May and missing market consensus of a 0.1 percent gain. Prices fell for unprocessed food (-2 percent) and non-regulated energy products (-1.5 percent) while cost of services related to transport increased (1.1 percent).

The harmonized index rose by 1.2 percent on the year and declined by 0.2 percent from the previous month.

Italy Inflation Rate Slows To 5-Month Low In June


Istat | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/28/2017 9:27:30 AM