Italy Inflation Rate Revised Lower to Near 3-Year Low


The annual inflation rate in Italy fell to 0.4 percent in July of 2019 from 0.7 percent in the previous month and below preliminary estimates of 0.5 percent. It was the lowest inflation since November of 2016, as a fall in prices of regulated energy products (-5.2 percent from 4.3 percent) was only slightly offset by higher prices of unprocessed food (1.5 percent from 0.7 percent), services related to transport (1.8 percent from 1.5 percent).

Year-on-year, cost slowed for restaurant and hotels (1.1 percent from 1.4 percent, in line with preliminary estimates); miscellaneous goods and services (1.4 percent from 1.6 percent, the same as in the flash estimate); clothing and footwear (0.2 percent from 0.3 percent, in line with advanced estimates) and alcoholic beverages and tobacco (1.8 percent from 2.1 percent, below flash estimates of 1.9 percent). In addition, prices fell for housing and utilities (-0.3 percent from 3.2 percent and compared with advanced estimates of a 0.3 percent gain), as prices fell for both regulated (-5.2 percent from 4.3 percent) and non-regulated energy products (-0.9 percent from -0.6 percent), and recreation and culture (-0.1 percent from -0.3 percent, matching earlier estimates). Meantime, furnishing and household equipment prices showed no growth, after a 0.1 percent and compared with earlier estimates of 0.1 percent. 

On the other hand, prices advanced faster for food and non-alcoholic beverages (0.8 percent from 0.3 percent, below flash estimates of 1 percent), mainly due to unprocessed food (1.5 percent from 0.7 percent), while inflation was steady for transport (0.8 percent, the same as in the previous month and matching earlier estimates) and health (0.5 percent, the same as in the previous month and also in line with flash estimates). 

Annual core inflation rate, which excludes energy and unprocessed food, increased to 0.5 percent in July from 0.4 percent in June and above flash estimates of 0.4 percent. Excluding only energy, inflation increased to 0.6 percent from 0.5 percent in June and compared with preliminary estimates of 0.5 percent.

On a monthly basis, consumer prices showed no growth, after a 0.1 percent gain in the previous month and missing flash estimates of 0.1 percent.

The harmonized index of consumer prices rose 0.3 percent from the previous year (from 0.8 percent in June); and fell 1.8 percent month-over-month, after rising 0.1 percent in June.

Italy Inflation Rate Revised Lower to Near 3-Year Low


Istat | Agna Gabriel | agna.gabriel@tradingeconomics.com
8/9/2019 9:50:43 AM