Italy Inflation Rate at Over 1-Year High

Inflation rate in Italy is expected to increase to 1.4 percent in June of 2018 from 1 percent in the previous month, beating market expectations of 1.3 percent. It was the highest inflation rate since May of 2017, mainly due to rising prices of both processed and unprocessed food, non-regulated energy products and services related to transport.

Prices of food are set to rise 2.8 percent in June, following a 1.9 percent gain in May, boosted by higher prices of both processed food (2.4 percent from 1.7 percent) and unprocessed food (3.4 percent from 2.4 percent). Additionally, energy inflation is expected to pick up to 4.2 percent in June from 2.1 percent in May, due to an increase in non-regulated energy products prices (9.4 percent from 5.3 percent). Also, cost of services related to transport should went up to 2.9 percent from 1.7 percent. Additional upward pressure come from: miscellaneous goods and services (2.4 percent from 2.3 percent); recreation and culture (0.9 percent from 0.4 percent); furniture and household equipment (0.3 percent from 0.2 percent) and alcoholic beverages and tobacco (3.8 percent from 3.5 percent). Meanwhile, prices were flat for housing and utilities, after a 0.1 percent fall in the previous month.

Annual core inflation rate, which excludes energy and unprocessed food rose to 0.9 percent from 0.8 percent in the prior month. Excluding only energy, the inflation should increase to 1.2 percent from 0.9 percent in May, according to the preliminary estimate.

On a monthly basis, consumer prices went up 0.3 percent, the same as in May and above market forecasts of 0.2 percent.

The harmonised index of consumer prices is expected to rise by 1.5 percent from the previous year (1 percent in May); and by 0.3 percent from the previous month (the same as in May).

Italy Inflation Rate at Over 1-Year High

Istat | Agna Gabriel |
6/28/2018 10:19:07 AM