Italy Inflation Rate Down to 4-1/2-Year Low


In March of 2014, annual consumer prices are expected to slow to 0.4 percent, down from 0.5 percent in the previous month and reaching the lowest rate since October of 2009. The slowdown was mainly due to a fall in prices of energy products and unprocessed food.

Year-on-year, prices of goods fell to -0.4 percent (from -0.1 percent in February 2014) and the annual rate of change of prices of Services was +1.0 percent (down from +1.2 in the previous month). As a consequence, the inflationary gap between Services and Goods increased by 0.1 percentage points with respect to February of 2014.

Prices of grocery and unprocessed food declined by 0.3 percent on a monthly basis and rose by 0.7 percent on annual basis (down from +1.0 percent in February 2014).

Excluding unprocessed food and energy, core inflation was 0.9 percent (0.1 lower than in February 2014); excluding only energy, the inflation was 0.8 percent, down from 1.0 percent in February 2014.

On a monthly basis, prices are expected to increase 0.1 percent, up from a 0.1 percent fall in February. The rise is mainly due to prices of services related to transport (+0.6 percent) and services related to recreation, including repairs and personal care (+0.3 percent) and services related to housing (+0.3 percent).

The harmonized CPI rose by 2.1 percent compared with the previous month and by 0.3 percent with respect to March 2013, according to preliminary estimates. 

Istat | Joana Taborda | joana.taborda@tradingeconomics.com
3/31/2014 9:37:57 AM