Italy: Harmonized inflation inches down in November
December 5, 2022
Harmonized inflation came in at 12.5% in November, which was down from October’s 12.6% but exceeded market expectations. October's reading had marked the highest inflation rate since our current records began. Slower increases in prices of non-regulated energy products, unprocessed food and services related to transport more than offset a faster increase in prices of regulated energy products.
Annual average harmonized inflation rose to 8.0% in November (October: 7.3%). Meanwhile, consumer price inflation was stable at October’s 11.8% in November.
Finally, harmonized consumer prices increased 0.6% over the previous month in November, slowing from October's 3.8% rise.
Commenting on the release, Paolo Pizzoli, senior economist at ING, stated:
“Looking ahead, we suspect that the energy component might have reached its peak, but will remain exposed to the vagaries of administrative decisions. For instance, the current €0.30 rebate on fuels will be reduced to €0.18 from December, which will have an impact on the headline measure. More encouragingly, in October producer price inflation recorded a clear deceleration to 28% YoY from 41.7% in September, suggesting that price pressures in the pipeline started to finally cool down.”