Italy: Fall in consumer prices eases in February
March 13, 2015
Consumer prices rose 0.4% in February, which contrasted the 0.4% drop tallied in the previous month and overshot the 0.1% rise that the markets had expected. According to the National Statistics Institute (Instat), February’s increase mainly reflected higher prices for food and beverages, tobacco, and, to a lesser extent, transportation services. In annual terms, consumer prices dropped 0.1% in February, which was slightly above the flash estimate of a 0.2% drop, and marked a significant improvement compared to the record-low 0.6% fall tallied in January.
Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, increased 0.3% over the previous month in February. The print contrasted the 0.2% decline recorded in January. Annual core inflation rose from January’s 0.3% to 0.6% in February. Finally, annual harmonized consumer prices swung from a 0.5% decline in January to a 0.1% rise in February, which marked the highest reading in three months.
Author: Cecilia Simkievich, Economist