Italy Deflation Deepens to 0.4% in June


Consumer prices in Italy are expected to decrease 0.4 percent year-on-year in June of 2016, following 0.3 drop in the previous period. The figure came worse than market expectations of 0.2 percent decline marking the fifth straight month of deflation, mainly due to the slowdown of the annual growth of prices of non-energy industrial goods while partially offset by the slower fall of non-regulated energy goods. On a monthly basis, consumer prices edged up 0.1 percent.

Year-on-year, prices were higher for food including alcohol (+0.5 percent from +0.4 percent), unprocessed food (+0.5 percent from +0.4 percent) and tobacco (+2.9 percent from +2.0 percent). Cost of energy (-7.5 percent from -8.4 percent) and non-regulated energy goods (-8.1 percent from -10 percent) fell at a slower pace while prices of non-energy industrial goods increased at a lower 0.4 percent (+0.7 percent in May). 

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

The harmonized index fell by 0.3 percent year-on-year while increases 0.1 percent compared to the previous month.

On a monthly basis, consumer prices in Italy increased 0.1 percent.

 Italy Deflation Deepens to 0.4% in June


Istat | Yekaterina Guchshina | yekaterina@tradingeconomics.com
6/30/2016 10:41:30 AM