Italy Inflation Rate Confirmed at 7-Month Low of 1.1%

The annual inflation rate in Italy decreased to 1.1 percent in December of 2018 from 1.6 percent in the previous month and in line with preliminary estimates. It is the lowest inflation rate since May, amid lower prices of processed food and transport.
Istat | Agna Gabriel | 1/16/2019 10:20:48 AM
Year-on-year, prices slowed for transport (1.2 percent from 3.5 percent in November), mainly due to lower prices of services related to transport (0.6 percent from 2 percent) and food and non-alcoholic beverages (0.8 percent from 0.9 percent), with lower prices of processed food (0.5 percent from 1.1 percent) more than offsetting higher cost of unprocessed food (1.3 percent from 1.1 percent). In addition, cost rose at a softer pace for restaurants and hotels (1.1 percent from 1.3 percent) and alcoholic beverages and tobacco (2.6 percent from 3.4 percent). 

Meanwhile, inflation was steady for housing and utilities (4.8 percent, the same as in November), as regulated energy prices rose 10.7 percent, the same as in the prior month while non-regulated energy prices eased (2.6 percent from 7.8 percent); clothing and footwear (0.2 percent) and education (0.1 percent). On the other hand, prices advanced faster for miscellaneous goods and services (2.6 percent from 2.5 percent) and furnishing and household equipment (0.2 percent from 0.1 percent). 

Annual core inflation rate, which excludes energy and unprocessed food, went down to 0.6 percent from 0.7 percent in November. Excluding only energy, the inflation decreased to 0.6 percent from 0.7 percent in the prior month.

On a monthly basis, consumer prices dropped 0.1 percent, after falling 0.2 percent in November, and matching flash estimates. 

The harmonized index of consumer prices is rose by 1.2 percent from the previous year (1.6 percent November); and decreased by 0.1 percent month-over-month (0.3 percent in November).

Italy Inflation Rate Confirmed at 7-Month Low of 1.1%