Italy Deflation Confirmed at -0.4% in June


Consumer prices in Italy fell 0.4 percent year-on-year in June of 2016, following 0.3 percent drop in the previous month and matching preliminary estimates. The country has remained in deflation for a fifth straight month, as transport and housing prices continued to decline and restaurants and hotels cost rose at a slower pace. On a monthly basis, prices edged up 0.1 percent.

The main downward pressure came from prices of transport (-2.3 percent, from -2.9 percent in May) and housing and utilities (-2.4 percent, the same as in May). In addition, inflation eased for restaurants and hotels (0.4 percent following 0.6 percent in May); communication (1.2 percent from 1.9 percent in May); recreation and culture (0.2 percent from 0.4 percent in May); and education (1.2 percent from 1.3 percent in May). Food (0.2 percent); clothing (0.5 percent); furnishing and household equipment (0.3 percent) and miscellaneous goods and services (0.1 percent) inflation remain steady. 

In contrast, upward pressure came from prices of alcoholic beverages and tobacco (up 2.1 percent following a 1.4 percent in May). 

On a monthly basis, consumer prices rose 0.1 percent, unchanged from the previous month 0.1 percent and in line with preliminary figures. The increase was mainly boosted by prices of non-regulated energy products (+2.1 percent), tobacco (+0.6 percent), and unprocessed food (+0.4 percent).

The harmonized index edged up 0.2 percent on the month but fell 0.2 percent on the year, above preliminary estimates of 0.1 percent growth and 0.3 percent drop, respectively.  

Italy Deflation Confirmed at -0.4% in June


Istat | Yekaterina Guchshina | yekaterina@tradingeconomics.com
7/13/2016 11:13:55 AM