Italy: Inflation drops to over one-year low in April
May 2, 2018
According to provisional data released by the National Statistical Institute (ISTAT) on 30 April, consumer prices rose 0.1% on a monthly basis in April, down from a 0.3% increase in March. The figure mainly reflected higher prices for processed food including alcohol, non-regulated energy products and services related to recreation—which were affected by seasonal factors. These increases were almost entirely offset by lower prices for regulated energy products, due to lower tariffs for electricity and gas. Meanwhile, inflation came in at 0.5% in April, below the previous month’s 0.8% print and the lowest figure since November 2016.
Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, grew 0.4% in April month-on-month, up slightly from March’s 0.3% rise. However, core inflation was 0.5% in April, down from March’s 0.7%. Finally, harmonized inflation came in at 0.6% (March: 0.9%).
Italy Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation of 1.4% in 2018, which is unchanged from last month’s projection. For 2019, panelists expect inflation to average 1.5%.
