Italy Inflation Rate Confirmed at -0.1% in August

Italian consumer prices fell 0.1 percent year-on-year in August of 2014, matching preliminary estimates. The country’s annual inflation rate touched the negative territory for the first time in nearly 55 years due to a drop in energy prices.

Year-on-year, prices of energy fell 3.6 percent in August, mainly driven by a 1.2 percent drop in cost of non-regulated energy products. Additional downward pressures came from food cost (-0.5 percent), mainly unprocessed food (-1.8 percent) and communication (-9.0 percent). Meanwhile, prices of services slowed (0.6 percent in August compared with a 0.7 percent increase in July). 

Excluding energy, annual inflation was 0.4 percent, up from 0.3 percent in July 2014; excluding unprocessed food and energy, core inflation was 0.5 percent (0.1 lower than in July 2014).

On a monthly basis, consumer prices rose 0.2 percent in August, following a 0.1 percent drop in July. The increase was mainly due to rising prices of services related to transport (+3.8 percent) on which seasonal factors had an impact. This increase was partially balanced by a fall in cost of non-regulated energy products (-0.5 percent). 

The Italian harmonized index of consumer prices decreased by 0.2 percent compared both with the previous month and with August 2013 (in July 2014, the annual rate of change was equal to zero). 

Italy Inflation Rate Confirmed at -0.1% in August

Istat | Joana Taborda |
9/12/2014 10:37:47 AM