Italy Falls Back Into Deflation in October

Italy's consumer prices declined 0.2 percent year-on-year in October 2016 after growing by 0.1 percent in September and worse than preliminary estimates of 0.1 percent fall. Prices fell the most since June, led by lower prices for housing and utilities, food and hotels and restaurants. Also, annual core inflation rate, which excludes energy and unprocessed food, fell to a record low of 0.2 percent compared to 0.5 percent the previous month. On a monthly basis, consumer prices fell 0.1 percent, following a 0.2 percent drop in September.
Istat | Yekaterina Guchshina | 11/14/2016 10:16:43 AM
Year-on-year, prices fell for housing and utilities (-1.9 percent from -1.2 percent in September); food and non-alcoholic beverages (-0.2 percent from +0.1 percent); communication (-1.3 percent from -1 percent); education (-1 percent from +0.9 percent); and hotels and restaurants (-0.3 percent from +0.8 percent). Also, cost rose at a slower pace for clothing and footwear (+0.4 percent from +0.5 percent) and remained unchanged for recreation and culture (+0.3 percent in September).

In contrast, cost of transportation rose 0.2 percent after falling by 0.1 percent the previous month; and health prices went up 0.3 percent, compared to 0.2 percent growth in September

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

On a monthly basis, consumer prices declined 0.1 percent, following a 0.2 percent drop in September and below preliminary figures, mainly due to the decline of prices of transport (-0.3 percent); communication (-0.3 percent); recreation and culture (-0.1 percent); education (-1.4 percent) and restaurants and hotels (-0.4 percent).

The harmonized index fell 0.1 percent on the year and went up 0.2 percent on the month. 

Italy Falls Back Into Deflation in October