Italy Inflation Rate Confirmed at 0.2% in August

Italian consumer prices increased by 0.2 percent in August of 2015, the same pace as in the previous two months and matching preliminary estimates. Higher prices of food and accommodation were enough to offset a further decline in cost of transportation, final figures showed.
Istat | Joana Ferreira | 9/14/2015 9:47:06 AM
Compared to August 2014, prices of food and soft drinks went up by 0.9 percent, following a 0.8 percent growth in July. Also, cost of restaurants and hotels grew 1.6 percent, compared to 1.4 percent rise in the previous month. Additional upward pressure came from: alcoholic beverages and tobacco (+2.9 percent); education (+1.9 percent); recreation and culture (+0.9 percent); health (+0.6 percent); and clothing and footwear (+0.5 percent). 

By contrast, cost of transportation declined faster by 2.9 percent compared to a 1.8 percent drop in the previous month. Prices of communication and housing droped 0.5 percent and 0.2 percent, respectively.

Core inflation (excluding energy and unprocessed food) was recorded at 0.7 percent, down 0.1 p.p. compared to the previous month.

On a monthly basis, consumer prices grew 0.2 percent, final figures showed, mainly due to higher prices of services related to transport (+2.9 percent) and services related to communications (+1.8 percent). The increase was partially offset by lower prices of non-regulated energy goods (-2.5 percent).

The harmonized index rose 0.4 percent on an annual basis while declined 0.1 percent compared to July 2015. 

Italy Inflation Rate Confirmed at 0.2% in August