Italy Inflation Rate Revised Down to Over 1-Year Low of 0.7%


Italy’s annual inflation rate decreased to 0.7 percent in June of 2019 from 0.8 percent in the previous month and below preliminary estimates of 0.8 percent. It is the lowest inflation rate since April of 2018, as cost slowed for food and non-alcoholic beverages, transport and housing and utilities.

Year-on-year, prices eased for food and non-alcoholic beverages (0.3 percent from 0.4 percent, below preliminary estimates of 0.4 percent); transport (0.8 percent from 1.8 percent, in line with flash estimates), due to services related to transport (1.5 percent from 1.6 percent); housing and utilities (3.2 percent from 3.3 percent, the same as in earlier estimates), amid a fall in non-regulated energy prices (-0.6 percent from 2.4 percent) and alcoholic beverages and tobacco (2.1 percent, below preliminary estimates of 2.2 percent). On the other hand, cost rose faster for restaurant and hotels (1.4 percent from 1.3 percent, matching earlier estimates) and miscellaneous goods and services (1.6 percent from 1.5 percent, the same as in preliminary estimates). Meantime, inflation was steady for health (at 0.5 percent, in line with flash estimates); clothing and footwear (0.3 percent, above flash estimates of 0.2 percent); and furnishing and household equipment (at 0.1 percent, matching earlier estimates) while prices continued to fall for recreation and culture (-0.3 percent from -0.1 percent, more than earlier estimates of -0.1 percent) and communication (-9.4 percent, the same as in the previous month and preliminary estimates). 

Annual core inflation rate, which excludes energy and unprocessed food, came in at 0.4 percent in June, the same as in the previous month and below flash estimates of 0.5 percent. Excluding only energy, inflation was unchanged at 0.5 percent, lower than preliminary estimates of 0.6 percent. 

On a monthly basis, consumer prices edged up 0.1 percent in June, after showing no growth in May and below preliminary estimates of 0.2 percent. 

The harmonized index of consumer prices is rose 0.8 percent from the previous year (from 0.9 percent in May); and advanced 0.1 percent month-over-month (the same as in May).

Italy Inflation Rate Revised Down to Over 1-Year Low of 0.7%


Istat | Agna Gabriel | agna.gabriel@tradingeconomics.com
7/16/2019 9:44:15 AM