Italy Inflation Rate Falls More Than Expected


Italian consumer prices fell 0.2 percent year-on-year in September of 2014, lower than a preliminary estimate of a 0.1 percent decrease. It is the lowest rate in fifty-five years and the second consecutive month of negative inflation.

Year-on-year, prices of non-regulated energy products recorded the largest decrease (-2.8 percent in September from -1.2 percent in August) while prices of services related to recreation, including repair and personal care dropped 0.3 percent, following a 0.7 percent increase in the previous month. Cost of unprocessed food fell at a slower 0.9 percent (-1.8 percent in August). Meanwhile, prices of grocery and unprocessed food were flat. 

Excluding unprocessed food and energy, core inflation was 0.4 percent in September, down from 0.5 percent in August 2014; excluding energy, the inflation was 0.3 percent (0.1 lower than in August 2014).

On a monthly basis, consumer prices declined 0.4 percent, compared with a preliminary 0.3 percent drop. The decrease was mainly due to a 4.8 percent fall in prices of services related to transport - on which seasonal factors had an impact – and to a drop in prices of non-regulated energy products (-0.6 percent). Additional downward pressures came from cost of services related to recreation, including repairs and personal care (-0.1 percent). 

The harmonized index rose by 1.9 percent on a monthly basis and declined by 0.1 percent on an annual basis (the flash estimate was -0.2 percent).

Istat | Joana Taborda | joana.taborda@tradingeconomics.com
10/14/2014 11:08:33 AM