Italy Deflation Steady at 0.1% in August

Consumer prices in Italy are expected to edge down by 0.1 percent year-on-year in August of 2016, at the same pace as in the previous month and in line with market expectations. It is the seventh consecutive month of deflation, mainly driven by lower prices for housing and utilities, transport and communications. On a monthly basis, consumer prices edged up 0.2 percent.

The main downward pressure came from prices of transport (-2.3 percent, from -2.2 percent in July) and housing and utilities (-2.0 percent, the same as in July) and communication (-0.4 percent from 1.5 percent in July). In addition, inflation eased for clothing (0.3 percent following 0.4 percent in July). Inflation remained steady for: furnishing and household equipment (0.3 percent); health (0.3 percent); education (1.2 percent) and miscellaneous goods and services (0.4 percent).  

In contrast, upward pressure came from prices of food and alcoholic beverages (0.9 percent following a 0.6 percent in July); recreation and culture (0.8 percent from 0.5 percent in July); restaurants and hotels (0.9 percent from 0.8 percent in July).

On a monthly basis, consumer prices rose 0.2 percent, unchanged from the previous month 0.2 percent and below market expectations of 0.3 percent. The increase was mainly boosted by prices of food (0.3 percent) and services related to transport (+2.2 percent).

The harmonized index was flat on the month and on the year, above market estimates of 0.2 percent drop and 0.1 percent fall, respectively.  

 Italy Deflation Steady at 0.1% in August

Istat | Yekaterina Guchshina |
8/31/2016 10:39:21 AM