Italian Inflation Beats Expectations in November


Italy's consumer prices rose 0.1 percent year-on-year in November 2016 after falling by 0.2 percent in October and better than market expectations of 0.1 percent drop. Annual core inflation went up to 0.4 percent compared to 0.2 percent in the previous month. On a monthly basis, consumer prices fell 0.1 percent, at the same pace as in October but less than market expectations of 0.3 percent decline.

Year-on-year, prices increased for transport (+0.7 percent vs +0.2 percent in October); recreation and culture (+0.2 percent vs 0.0 percent); restaurants and hotels (+0.9 percent vs -0.3 percent); clothing and footwear (+0.5 percent vs +0.4 percent); miscellaneous goods and services (+0.7 percent vs +0.4 percent) and remained unchanged for food (-0.2 percent in October) 

Meanwhile, prices fell for housing and utilities (-1.9 percent, at the same pace as in October); communication (-2.5 percent from -1.3 percent); and education (-1 percent from +0.9 percent); and hotels and restaurants (-0.9 percent from -0.1 percent). 

Excluding energy and unprocessed food, core inflation rate was recorded at 0.4 percent, from 0.2 percent in October. Excluding energy, the inflation fell to 0.5 percent from 0.6 percent. 

On a monthly basis, consumer prices declined 0.1 percent, at the same pace as in October but less than market expectations of 0.3 percent decline, mainly due to the decline of prices of transport (-0.4 percent); communication (-0.7 percent); recreation and culture (-0.3 percent); restaurants and hotels (-1.1 percent) and health (-0.1 percent).

The harmonized index rose 0.1 percent on the year and went down 0.2 percent on the month. 

Istat | Yekaterina Guchshina | yekaterina@tradingeconomics.com
11/30/2016 11:05:44 AM