Italy Annual Inflation Rate Confirmed at 8-Month High

Italy's consumer prices rose 0.1 percent year-on-year in September 2016, following a 0.1 percent drop in August and in line with preliminary estimates. It was the first gain since January this year, as cost of accommodation and clothing continued to rise while prices of transport and housing fell at a slower pace.
Istat | Joana Ferreira | 10/14/2016 9:32:31 AM
Year-on-year, prices of hotels and restaurants rose 0.8 percent, following a 0.9 percent gain in August; and cost of clothing and footwear went up 0.5 percent after increasing by 0.4 percent the previous month. Additional upward pressure came from: food and non-alcoholic beverages (+0.1 percent); miscellaneous goods and services (+0.3 percent); health (+0.2 percent); and recreation and culture (+0.3 percent).

By contrast, cost of transportation edged down 0.1 percent after falling by 2.3 percent the previous month; and prices of housing and utilities decreased 1.2 percent, slowing from a 2 percent drop in August.

Excluding energy and unprocessed food, core inflation was recorded at 0.5 percent, from 0.4 percent in August. Excluding energy, the inflation fell to 0.5 percent from 0.6 percent. 

On a monthly basis, consumer prices declined 0.2 percent, following a 0.2 percent gain in August and matching preliminary figures, mainly due to the decline of prices of services related to transport (-3 percent) and of services related to recreation, including repair and personal care (-0.8 percent).

The harmonized index rose 0.1 percent on the year and jumped 1.9 percent on the month. 

Italy Annual Inflation Rate Confirmed at 8-Month High