Italian Inflation Rate Edges Down to 1.1% in August

In August, Italy's annual inflation rate fell 0.1 percentage points to 1.1 percent. The slowdown was mainly due to lower increases in prices of food and non-alcoholic beverages and falling communication costs.

Transport costs were up by 2.7 percent, food prices increased 2.6 percent (down from 3.0 percent in July), and housing and electricity prices rose 1.4 percent. The biggest downward pressure came from communications (-4.5 percent).

With regard to transport, the increase was mainly due to higher prices of passenger transport by air (+26.3 percent). In the same division, prices of fuels and lubricants increased by 1.2 percent on monthly basis; nevertheless, the annual rate of change was negative (-2.0 percent), owing to the comparison with August 2012, when the monthly rate of change was higher (+3.5 percent).

Concerning food and non-alcoholic beverages, the main causes were the large decreases, due mainly to seasonal factors, of prices of fresh vegetables (-6.5 percent on monthly basis; +2.0 percent on annual basis down from +8.5 percent in July) and of fresh fruit (-2.1 percent compared with the previous month; +9.9 percent with respect to August 2012).

Italian Inflation Rate Edges Down to 1.1% in August

Istat | Nuno Fontes |
8/30/2013 10:57:46 AM