Italy Inflation Rate at -0.2% in February


Consumer prices in Italy are expected to fall by an annual 0.2 percent in the second month of the year. In February of 2014, inflation was 0.47 percent

Year-on-year, energy cost dropped 8.5 percent in February, leading to a 3.1 percent fall in transport cost. Housing, water, electricity and gas prices dropped 1.4 percent while recreation and culture declined 0.2 percent.

On the other hand, prices increased for restaurants and hotels (+1 percent), health (+0.4 percent), furnishing and household equipment (+0.3 percent) and clothing and footwear (+0.2 percent). Cost of food rose 1 percent, mostly due to a recovery in fresh vegetables prices (11.2 percent from -1.7 percent in the previous month).

Excluding unprocessed food and energy, core inflation was 0.6 percent (up from 0.3 percent in the previous month); excluding energy, the inflation was 0.7 percent (0.4 percent higher than in January).

On a monthly basis, consumer prices increased 0.3 percent in February of 2015, after a 0.4 drop last month. Energy prices advanced 0.2 percent after declined 3.73 percent in January of 2015, which led to rises in cost of transport (+ 0.7 percent) and services related to transport (+ 0.8 percent), on which seasonal factors had an impact. Prices of health and restaurants and hotels increased 0.1 percent, respectively. Clothing and footwear and furnishing and household equipment index were unchanged.

Food prices expanded 1 percent, mostly due to an 8.2 percent rise in fresh vegetables, which seasonally factors had an impact, too.

The harmonized index rose by 0.1 percent with respect to February of 2014, and 0.4 percent with respect to the previous month.

Istat | Carolina Cunha | Carolina.cunha@tradingeconomics.com
2/27/2015 11:13:14 AM