Italy Deflation at 15-Month High


Consumer prices in Italy are expected to decrease by 0.4 percent year-on-year in April of 2016 following a 0.2 percent fall in the previous month and compared to market expectations of a 0.2 percent decrease. It is the biggest drop in consumer prices since January of 2015 mainly due to lower energy cost. On a monthly basis, prices were stable, preliminary estimates showed.

Year-on-year, prices were lower for energy products (-4.7 percent) such as natural gas (-6.7 percent) and electricity (-1.9 percent). Cost of goods fell by 1 percent while services increased 0.4 percent.

Core inflation (excluding energy and unprocessed food) was recorded at 0.5 percent compared to 0.6 percent in March.
On a monthly basis, prices were unchanged as a decline in energy cost (-4.3 percent) was offset by rises in cost of non-regulated energy products (+1.4 percent), recreation services, including repair and personal care (+0.7 percent) and transport (+0.4 percent).

Italy Deflation at 15-Month High


Istat | Francisco Caeiro | francisco.caeiro@tradingeconomics.com
4/29/2016 11:17:23 AM