Italy: Inflation at over one-year low in May
June 14, 2019
Consumer prices were flat month-on-month in May (previously reported: +0.1% month-on-month), following April’s 0.2% increase, according to revised data released by the National Statistical Institute (ISTAT) on 14 June. The figure reflected higher prices for unprocessed food, and for non-regulated energy products, which more than offset lower prices for services related to transport—due to the end of the Easter holidays—and of services related to communication. Meanwhile, inflation came in at 0.8% in May, down from April’s 1.1% and the weakest reading since April 2018.
Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, were 0.1% lower compared to the previous month in May, following April’s 0.6% increase. Meanwhile, core inflation edged down from April’s 0.6% to 0.4%, while harmonized inflation declined to 0.9% from April’s 1.1%.
Italy Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation of 1.5% in 2019, which is unchanged from last month’s projection. For 2020, panelists expect inflation to average 1.7%.