Italy Inflation Rate Ticks Up to 0.5% in August

Italy's annual inflation rate is expected to rise to 0.5 percent in August 2019 from 0.4 percent in the previous month, mainly due to higher prices of food, a preliminary estimate showed.

Year-on-year, prices are expected to increase faster for food & non-alcoholic beverages (1.1 percent vs 0.8 percent in July), namely unprocessed (1.6 percent vs 1.5 percent) and processed food (0.6 percent vs 0.1 percent); miscellaneous goods & services (1.6 percent vs 1.4 percent); health (0.6 percent vs 0.5 percent); alcoholic beverages & tobacco (2.1 percent vs 1.8 percent). Also, cost should rebound slightly for recreation & culture (0.1 percent vs -0.1 percent).

On the other hand, inflation is seen slowing for transport (0.6 percent vs 0.8 percent) and restaurants & hotels (1.0 percent vs 1.1 percent); and cost is expected to fall for housing & utilities (-0.3 percent, the same pace as in the prior month).

Annual core inflation rate, which excludes energy and unprocessed food, should edge up to 0.6 percent in August from 0.5 percent in the previous month. Excluding only energy, inflation is likely to advance to 0.7 percent from 0.6 percent in July.

On a monthly basis, consumer prices should increase 0.5 percent, after being flat in the prior month and exceeding market expectations of a 0.3 percent gain.

The harmonized index of consumer prices is expected to rise 0.5 percent from the previous year (from 0.3 percent in July); and to be unchanged month-over-month (from -1.8 percent in July).

Italy Inflation Rate Ticks Up to 0.5% in August

Istat | Luisa Carvalho |
8/30/2019 9:40:55 AM