Italian Inflation Rate Eases to 6-Month Low in July

Italian consumer prices are expected to increase by 1.1 percent year-on-year in July 2017, in line with market expectations and following a 1.2 percent gain in the previous month, the preliminary estimate showed. It was the lowest inflation rate since January, as prices rose at a slower pace for transport, food and housing.

Year-on-year, prices rose at a slower pace for transport (2.3 percent from 3 percent in June), food and non-alcoholic beverages (0.9 percent from 1), housing, water, electricity, gas and other fuels (2.6 percent from 3 percent), and miscellaneous goods and services (0.8 percent from 1 percent). Meanwhile, cost grew further for recreation and culture (0.4 percent from 0.3 percent in June), while inflation was steady for restaurants and hotels (at 2.2 percent), health (at 0.2 percent), and clothing and footwear (at 0.4 percent).

Annual core inflation rate, which excludes energy and unprocessed food, edged down to 0.8 percent from 0.9 percent in June. Excluding only energy, the inflation was unchanged at 0.9 percent.

On a monthly basis, consumer prices rose 0.1 percent, also in line with market consensus, after decreasing by 0.1 percent in June. Higher prices of services related to transport (1.6 percent) and of services related to recreation, including repair and personal care (0.9 percent), offset a fall in prices of food including alcohol (-0.7 percent) and energy (-1 percent). 

The harmonized index rose by 1.2 percent on the year and declined by 1.9 percent from the previous month.

Italian Inflation Rate Eases to 6-Month Low in July

Istat | Joana Ferreira |
7/31/2017 9:25:33 AM