Italian Inflation Rate Confirmed At Highest Since May 2014


Italy's consumer prices rose by 0.5 percent year-on-year in December 2016 after increasing by 0.1 percent in November, matching the preliminary estimate. It was the highest inflation rate since May 2014, mainly boosted by rising prices for food and transport.

Compared with December 2015, the biggest upward pressure came from food and non-alcoholic beverages (+0.8 percent from a flat reading in November); transport (+2.2 percent from +0.7 percent); restaurants and hotels (+0.7 percent, the same as in November); miscellaneous goods and services (+0.9 percent from +0.7 percent); health (+0.4 percent, the same as in November); and recreation and culture (+0.5 percent from +0.2 percent). By contrast, housing prices continued to fall (-1.8 percent from -1.9 percent in November).

Annual core inflation rate, which excludes energy and unprocessed food, rose to 0.6 percent from 0.4 percent the previous month. Excluding only energy, the inflation went up to 0.7 percent from 0.4 percent in November.

On a monthly basis, consumer prices increased by 0.4 percent, following a 0.1 percent drop in November, mainly due to the increase
of prices of services related to transport (+1.9 percent), non-regulated energy products (+1.1 percent), unprocessed food (+1 percent) and services related to recreation, including repair and personal care (+0.5 percent).

In the full year 2016, the average CPI fell 0.1 percent, the first annual drop since 1959, following a 0.1 percent gain in 2015.

The harmonized index rose by 0.5 percent on the year and by 0.4 from the previous month. Still, the index fell 0.1 percent in 2016.

Istat | Joana Ferreira | joana.ferreira@tradingeconomics.com
1/16/2017 10:02:23 AM