Italy Inflation Rate Slows to 9-Month Low of 0.9%


The annual inflation rate in Italy is expected to decrease further to 0.9 percent in January of 2019 from 1.1 percent in the previous month. It is the lowest inflation rate since April of 2018, amid lower prices of food & non-alcoholic beverages; transport and energy products.

Year-on-year, prices are set to ease for food and non-alcoholic beverages (0.6 percent from 0.8 percent in December), as processed food prices fell 0.1 percent (from 0.5 percent); transport (1 percent from 1.2 percent), despite rising cost of services related to transport (2.3 percent from 0.6 percent) and housing and utilities (3.4 percent from 4.8 percent) due to lower prices of both regulated (6.9 percent from 10.7 percent) and non-regulated energy (0.3 percent from 2.6 percent). In addition, cost slowed for miscellaneous goods and services (1.8 percent from 2.6 percent); clothing and footwear (0.1 percent from 0.2 percent) and alcoholic beverages & tobacco (2.2 percent from 2.6 percent).

On the other hand, prices are set to rise faster for restaurants and hotels (1.2 percent from 1.1 percent) while inflation should be steady for furnishing and household equipment (0.2 percent, the same as in December) and education (0.1 percent). Meanwhile, cost continued to drop for health (0.5 percent from a flat reading); recreation and culture (-0.4 percent from -0.2 percent) and communication (-5.5 percent from -5.6 percent). 

Annual core inflation rate, which excludes energy and unprocessed food, should went down to 0.5 percent from 0.6 percent in December. Excluding only energy, the inflation is set to remain steady at 0.6 percent in January.

On a monthly basis, consumer prices should increase 0.1 percent, after falling 0.1 percent in December, in line with market expectations. 

The harmonized index of consumer prices is expected to rise by 0.9 percent from the previous year (1.2 percent in December); and to fell by 1.7 percent month-over-month (-0.1 percent in December).

Italy Inflation Rate Slows to 9-Month Low of 0.9%


Istat | Agna Gabriel | agna.gabriel@tradingeconomics.com
2/4/2019 10:33:15 AM