Italy Inflation Rate at 16-Month High of 1.7%

The annual inflation rate in Italy is expected to increase to 1.7 percent in August of 2018 from 1.5 percent in the previous month, beating market expectations of 1.4 percent. It was the highest inflation rate since April of 2017, mainly due to higher prices of services related to transport.

Year-on-year, prices are set to rise faster for transport (4.2 percent from 4 percent in July), namely services related to transport (2.9 percent from 1.7 percent); housing and utilities (2.8 percent from 2.6 percent); recreation and culture (0.3 percent from 0.2 percent) and furniture and household equipment (0.4 percent from 0.2 percent). Additionally, cost rebounded for health (0.1 percent from -0.1 percent) and inflation was steady for food and non-alcoholic beverages (2.4 percent, the same as in July), as a rise in prices of processed food (2.3 percent from 1.8 percent) was offset by a slowdown in prices of unprocessed food (3 percent from 3.6 percent); miscellaneous goods and services (2.6 percent) and clothing and footwear (0.1 percent). On the other hand, cost slowed for restaurant and hotels (1.1 percent from 1.2 percent) and alcoholic beverages and tobacco (3.5 percent from 3.8 percent).

Annual core inflation rate, which excludes energy and unprocessed food rose to 0.9 percent from 0.7 percent in the prior month. Excluding only energy, the inflation should increase to 1.1 percent from 0.9 percent in July.

On a monthly basis, consumer prices went up 0.5 percent, following a 0.3 percent gain in July and above market forecast of 0.2 percent.

The harmonised index of consumer prices is expected to rise by 1.7 percent from the previous year (1.9 percent in July); and to decrease by 0.1 percent from the previous month, after a 1.4 percent drop in July.

Italy Inflation Rate at 16-Month High of 1.7%

Istat | Agna Gabriel |
8/31/2018 9:43:25 AM