Italy July Inflation Rate Confirmed at 1.5%

The annual inflation rate in Italy rose to 1.5 percent in July of 2018 from 1.3 percent in the previous month, unrevised from the preliminary estimate and above market expectations of 1.4 percent. It was the highest inflation rate since April last year, mostly due to higher prices of energy.

Year-on-year, prices increased further for unprocessed food (3.6 percent compared to 3.4 percent in June) and processed food (1.8 percent compared to 1.7 percent). Also, cost edged up for energy (7.9 percent compared to 4.2 percent), boosted by regulated energy products (5.5 percent compared to -1.2 percent) and non-regulated (10.4 percent compared to 9.4 percent). Additionally, prices advanced faster for restaurants and hotels (1.2 percent compared to 1.0 percent); housing and utilities (2.6 percent compared to a flat reading); miscellaneous goods and services (2.6 percent compared to 2.3 percent) and alcoholic beverages and tobacco (3.8 percent compared to 3.5 percent). On the other hand, cost slowed for recreation and culture (0.2 percent compared to 0.9 percent) and clothing and footwear (0.1 percent compared to 0.2 percent). In addition, prices of health fell (-0.1 percent compared to a flat reading) and inflation was steady for furniture and household equipment (0.2 percent, the same as in June).

Annual core inflation rate, which excludes energy and unprocessed food went up 0.7 percent, easing from 0.8 percent in June. Excluding only energy, inflation rose 0.9 percent after a 1.0 percent increase in the prior month.

On a monthly basis, consumer prices advanced 0.3 percent, following a 0.2 percent gain in the previous month, in line with market consensus and unrevised from the preliminary figure.

The harmonised index of consumer prices edged up by 1.9 percent from the previous year (vs 1.4 percent in June) while declined by 1.4 percent from the prior month (vs 0.2 percent in June).

Italy July Inflation Rate Confirmed at 1.5%

Istat | Stefanie Moya |
8/13/2018 8:37:24 AM