Italian Inflation Rate Highest Since September 2013


Consumer prices in Italty are expected to rise 0.9 percent year-on-year in January of 2017 following 0.5 percent increase in the previous month and matching market expectations. It is the highest inflation rate since September of 2013, mainly boosted by cost of energy and unprocessed food, preliminary estimates showed. On a monthly basis, consumer prices increased by 0.2 percent.

Compared with January of 2016, the biggest upward pressure came from prices of non-regulated energy products (9 percent compared to 2.4 percent in December of 2016), unprocessed food (5.3 percent from 1.8 percent), food and non-alcoholic beverages (2.3 percent from 0.8 percent), transport (3.2 percent from 2.2 percent); restaurants and hotels (1 percent from 0.7 percent); miscellaneous goods and services (0.9 percent, the same pace as in December); clothing and footwear (0.5 percent, the same as in December) and health (0.4 percent, the same as in December). Meanwhile, housing prices (-0.5 percent from -1.8 percent in November) and cost of regulated energy products (-3 percent from -5.8 percent) declined less.

Annual core inflation rate, which excludes energy and unprocessed food, rose to 0.7 percent from 0.8 percent the previous month. Excluding only energy, the inflation went up to 0.8 percent from 0.7 percent in December of 2016.

On a monthly basis, consumer prices increased by 0.2 percent, following a 0.4 percent rise in December, mainly due to a decrease in prices of services related to transport (-1.7 percent) that offset a rise in non-regulated energy products (3 percent), unprocessed food (2.9 percent) and regulated energy products (1.3 percent).

In January of 2017, the harmonized index fell 2 percent month-over-month while increased 0.7 percent year-on-year.

Istat | Deborah Neves | deborah.neves@tradingeconomics.com
2/3/2017 11:41:53 AM