Italy: Consumer prices mark first annual drop on record in August
September 12, 2014
According to more detailed data for August, consumer prices rose 0.2% over the previous month, which contrasted the 0.1% decrease recorded in July. The increase met the preliminary estimate and was driven by higher prices for transport, which were partly offset by lower prices for energy. Consumer prices fell 0.1% over the same month last year, which contrasted the 0.1% increase observed in July. The figure marked the first annual drop on record.
Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, rose 0.4% in August over the previous month, which was up from the 0.1% increase recorded in July. Annual core inflation inched down from 0.6% in July to a record-low of 0.5% in August. Finally, annual HICP inflation averaged a record-low 0.5% in August, which was slightly down from the 0.6% recorded in July.
Author: Dirina Mançellari, Senior Economist