Italy: Consumer prices mark second consecutive annual drop since 1959
October 14, 2014
According to more detailed data for September, consumer prices fell 0.4% over the previous month, which contrasted the 0.2% increase recorded in August and marked the biggest drop on record. The result was slightly down from the 0.3% fall reported in the preliminary estimate and was driven by lower prices for transport and energy. Consumer prices fell 0.2% over the same month last year, which was down from the 0.1% drop estimated in the advance release. The figure came in below August’s 0.1% decrease, which had marked the first annual drop since 1959.
Core consumer prices, which exclude more volatile categories, such as unprocessed food and energy, fell 0.5% in September over the previous month, which contrasted the 0.4% increase recorded in August. Annual core inflation inched down from 0.5% in August to a record low of 0.4% in September. Finally, annual HICP inflation averaged a record low 0.4% in September, which was slightly down from the 0.5% recorded in August.
Author: Dirina Mançellari, Senior Economist