Italy: Consumer prices record second consecutive annual drop in March
April 14, 2016
According to the Italian Statistical Institute (ISTAT), consumer prices rose 0.2% in March over the previous month, which contrasted February’s 0.2% decrease and marked the highest reading in five months. The result overshot market expectations of a flat result. The decline mainly reflected increases in prices for clothing and footwear as well as for transport. Consumer prices dropped 0.2% in March on an annual basis, which was up from February’s 0.3% decline. The revised data was in line with the preliminary estimate.
Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, increased 0.1% in March on a monthly basis and followed February’s flat reading. Core inflation tallied 0.6% in March (February: 0.5%). Finally, harmonized consumer prices fell 0.2% over the same month last year (preliminary estimate: -0.3% year-on-year), which was in line with February’s 0.2% decline.