Italy October Inflation Rate Revised Down to Near 3-Year Low

The annual inflation rate in Italy fell to 0.2 percent in October 2019 from 0.3 percent in the previous month, below a preliminary estimate and market expectations of 0.3 percent. It was the lowest inflation rate since November 2016, as cost of regulated energy products dropped further.
Istat | Stefanie Moya | stefanie.moya@tradingeconomics.com 11/15/2019 10:27:40 AM
Year-on-year, prices dropped further for housing & utilities (-1.8 percent from -0.4 percent in September), mainly due to regulated energy products (-8 percent from -5.3 percent); and recreation & culture (-0.4 percent from -0.1 percent). Also, cost slowed for restaurants & hotels (1.3 percent from 1.6 percent); miscellaneous goods & services (1.5 percent from 1.7 percent); and health (0.6 percent from 0.7 percent). On the other hand, prices advanced at a faster pace for food & non-alcoholic beverages (0.8 percent from 0.6 percent), in particular processed food (0.8 percent from 0.7 percent) and unprocessed (1.2 percent from 1.1 percent); and cost of transport was unchanged, after declining 0.7 percent in September, of which services related to transport (1.8 percent from 0.4 percent).

Annual core inflation rate, which excludes energy and unprocessed food, increased to 0.7 percent in October, the highest level since November last year, from 0.6 percent in September. Excluding only energy, inflation advanced to 0.7 percent from 0.6 percent in the previous month.

On a monthly basis, consumer prices went down 0.1 percent, after a 0.6 percent fall in the prior month and against market forecasts and a preliminary reading of a flat reading.

The harmonized index of consumer prices rose 0.2 percent from a year ealier, the same pace as in the previous month; while decreased 0.1 percent month-over-month (vs 1.4 percent in September).

Italy October Inflation Rate Revised Down to Near 3-Year Low