Italy Consumer Prices Post 1st Fall in 10 Months

Consumer prices in Italy decreased by 0.3 percent year-on-year in February 2016 compared to a 0.3 percent growth in the previous month and matching preliminary estimates, final figures showed. It was the first annual fall since April 2015 and the biggest in more than a year, as cost of food and transportation dragged inflation down.
Istat | Joana Ferreira | 3/15/2016 9:35:53 AM
Year-on-year, cost of food and non-alcoholic beverages declined by 0.4 percent, after rising 0.4 percent in January; and transport prices dropped further by 2.7 percent, accelerating from a 1.1 percent fall in the previous month.

Additional downward pressure came from: housing and utilities (-0.5 percent); and communications (-0.6 percent). In contrast, prices of restaurants and hotels (+1 percent), health (+0.4 percent), recreation and culture (+1 percent), furnishings and household equipment (+0.4 percent) and clothing and footwear (+0.5 percent) rose.

Annual core inflation rate (excluding energy and unprocessed food) was recorded at 0.5 percent.

On a monthly basis, consumer prices dropped 0.2 percent, the same pace as in the previous month and matching first estimates. Cost of food and transportation dropped 0.1 percent and 0.9 percent, respectively.

Harmonised consumer prices decreased by 0.2 percent year-on year and fell 0.4 percent on the month.

Italy Consumer Prices Post 1st Fall in 10 Months