Italy February Inflation Rate Lowest in 14-Months

Consumer prices in Italy are expected to increase 0.6 percent year-on-year in February of 2018, easing from a 0.9 percent gain in the prior month, and slightly below market expectations of a 0.7 percent rise. It is the lowest inflation rate since December of 2016, as prices fell for food while slowed for housing and utilities.
Luisa Carvalho | 2/28/2018 1:23:46 PM
Year-on-year, cost fell for food & non-alcoholic beverages (-0.4 percent vs 1.3 percent in January), driven by unprocessed food (-3.2 percent vs 0.4 percent). Also, cost of  housing & utilities grew at a slower pace (2.6 percent vs 3.1 percent), as prices rose less for regulated energy products (5.2 percent vs 6.4 percent) and non-regulated energy ones (2.1 percent vs 2.5 percent). 

In contrast, prices continued to advance at a faster pace for: transport (1.7 percent vs 1.6 percent); restaurants & hotels (1.2 percent vs 1 percent) and furnishings (0.3 percent vs 0.1 percent). Meantime, inflation remained steady for miscellaneous goods & services (1.6 percent); recreation & culture (1.2 percent) and alcoholic beverages & tobacco (1.3 percent).

On a monthly basis, consumer prices are expected to edge up 0.1 percent, following a 0.3 percent increase in January and slightly below market expectations of a 0.2 percent gain.

Annual core inflation rate, which excludes energy and unprocessed food, is set to rise to 0.7 percent, the most in five months, from 0.6 percent in January. Excluding only energy, the inflation should ease to 0.3 percent from 0.6 percent in the prior month.

The harmonized index dropped 0.3 percent on the month (from -1.5 percent in January) and went up 0.7 percent on the year (1.2 percent in January).

Italy February Inflation Rate Lowest in 14-Months