Italy Inflation Rate Down to 5-Year Low


The Italian annual consumer price index slowed to 0.1 percent in July of 2014 from 0.3 percent in the previous month, according to provisional estimates. The slowdown was mainly due to a decrease in the cost for regulated energy products.

Prices of goods declined 0.6 percent year-on-year (from -0.3 percent in June 2014), and price of services was stable at 0.8 percent, in July of 2014. The inflationary gap between services and goods increased by 0.3 percentage points with respect to the previous month. 

Prices of grocery and unprocessed food declined by 0.7 percent on monthly basis and fell by 0.6 percent on annual basis (from -0.5 percent observed in June of 2014). 

Excluding unprocessed food (whose decline year-on-year was stable at -2.9 percent) and energy, core inflation was 0.6 percent (0.1 lower than in June 2014); excluding only energy, the inflation was 0.3 percent (down from 0.5 percent in June of 2014).

Month-over-month, the consumer price index declined by 0.1 percent in July of 2014 compared with the previous month. This decline was mainly attributed to prices fall of fresh fruit (-9.2 percent) and fresh vegetables (-3.9 percent) - on which seasonal factors had an impact - and price fall of regulated energy products (-3.1 percent).

In July 2014, the harmonized index of consumer prices (HICP) decreased by 2.1 percent compared with the previous month and registered an annual rate of change equal to zero (from 0.2 in June of 2014). 

Istat | Isabel Felino | isabel.felino@tradingeconomics.com
7/31/2014 10:34:11 AM