Italy: Consumer prices fall to multi-year low in January
February 4, 2015
According to preliminary estimates, consumer prices dropped 0.4% over the previous month in January, which came in below the flat reading recorded in December. January’s decline reflected lower prices for energy, electricity and transport. Conversely, prices for food and beverages increased compared to the previous month, partially offsetting the decline tallied in the aforementioned components. In annual terms, consumer prices dropped 0.6% in January, which was far below the flat reading tallied in December and represented a multi-year low.
Core consumer prices, which exclude more volatile categories, such as unprocessed food and energy, declined 0.2% over the previous month in January. This contrasted the 0.2% rise recorded in December. Annual core inflation inched down from 0.6% in December to 0.3% in January. Finally, annual harmonized consumer prices decreased 0.4% in January, which was down from the 0.1% decline recorded in December.
Author: Cecilia Simkievich, Economist