Italy Deflation Slows in May


Consumer prices in Italy are expected to decrease by 0.3 percent year-on-year in May of 2016, lower than a 0.5 percent fall in April and matching market expectations, preliminary estimates showed. The country recorded the fourth straight month of deflation although it slowed due to higher prices of tobacco and unprocessed food.

Year-on-year, prices were higher for food including alcohol (+0.2 percent from -0.1 percent), unprocessed food (+0.3 percent from -0.5 percent), tobacco (+2 percent from -0.3 percent) and non energy industrial goods (+0.7 percent from +0.6 percent) while cost of energy fell at a slower pace (-8.2 percent from -8.3 percent). 

Annual core inflation (excluding energy and unprocessed food) was recorded at 0.6 percent, up from 0.5 percent in April.

The harmonized index fell by 0.3 percent year-on-year, the same as in the previous month.

On a monthly basis, consumer prices in Italy increased 0.3 percent.

Istat | Francisco Caeiro | francisco.caeiro@tradingeconomics.com
5/31/2016 10:59:20 AM