Italy: Inflation decreases in April
April 29, 2022
Consumer prices increased 0.18% over the previous month in April, slowing down from March's 1.01% increase. April's result marked the weakest reading since September 2021. Looking at the details of the release, the lower reading was largely due to a deceleration of energy price pressures. Government measures taken to limit fuel prices and a 10% cut in electricity and gas tariffs by the state energy regulator were largely responsible.
Inflation came in at 6.2% in April, which was down from March’s 6.5%. Meanwhile, the trend pointed up, with annual average inflation coming in at 3.6% in April (March: 3.2%). Lastly, harmonized inflation edged down to 6.6% in April, from the previous month's 6.8%. That said, core inflation increased to 2.5% in April from 2.0% in March.
Looking ahead to the rest of Q2, the cuts to electricity and gas tariffs will reduce upward pressure on inflation. A potential extension of the government measures to limit fuel prices poses a downside risk, while rising core price pressures poses an upside risk.