Italy: Inflation falls to lowest level in almost two years
January 15, 2013
In December, consumer prices rose 0.2% over the previous month, which contrasted the 0.2% drop recorded in November. The reading was driven by higher prices for transport, communications as well as for food and non-alcoholic beverages. As a result, annual inflation dropped from 2.5% in November to 2.3% in December, marking the lowest inflation rate since January 2011.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.4% over the previous month, contrasting the 0.2% drop recorded in November. As a result, annual core inflation inched up from 1.5% in November to 1.6% in December. Finally, annual HICP inflation averaged 3.3% in 2012, which was up from the 2.9% recorded in 2011 but was broadly in line with the 3.2% projected by FocusEconomics Consensus Forecast panellists.
Author: Armando Ciccarelli, Head of Data Solutions