Italy Inflation Rate Confirmed at 0.2% in July


Italian annual inflation was recorded at 0.2 percent in July of 2015, the same pace as in the previous month. While prices of food and accommodation eased and transport cost fell further, prices of leisure activities and health accelerated along with a smaller decline in housing cost.

Year-on-year, prices of food; and accommodation rose 0.8 percent and 1.4 percent, respectively, compared to 1 percent and 1.6 percent in June; while cost of transportation declined 1.8 percent compared to a 1.6 percent drop in the previous month. Meanwhile, prices of recreation and culture went up by 1.2 percent, compared to 0.4 percent in June and cost of health grew 0.6 percent against a 0.5 percent rise in the previous month. Housing and utilities declined at a slower 0.3 percent from a 1.3 percent decrease in June.

Additional upward pressure came from: alcoholic beverages and tobacco (+3 percent); education (+1.9 percent); furniture, and household services (+0.4 percent); and clothing and footwear (+0.4 percent). In contrast, prices of communication declined 3.2 percent.

Core inflation (excluding energy and unprocessed food) was recorded at 0.8 percent, up 0.2 p.p. compared to the previous month.

On a monthly basis, consumer prices fell 0.1 percent, final figures showed, mainly due to declines in the prices of fresh fruit (-8.1 percent) and fresh vegetable (-7.2 percent), affected by factors of seasonal nature; and of prices of regulated (-0.5 percent) and non-regulated energy products (-0.8 percent). The decline was partially offset by higher prices of services related to transport (+1.9 percent), also influenced by seasonal factors.

The harmonized index rose 0.3 percent on an annual basis while declined 2 percent compared to June 2015. 

Italy Inflation Rate Confirmed at 0.2% in July


Istat | joana.ferreira@tradingeconomics.com
8/11/2015 9:56:46 AM