Italy: Inflation falls to lowest level in over two years
December 13, 2012
In November, consumer prices dropped 0.2% over the previous month, which was down from the flat reading recorded in October. Lower prices for transport as well as for hotels and restaurants more than offset higher prices for communications as well as for food and non-alcoholic beverages. As a result, annual inflation inched down from 2.6% in October to 2.5% in November, marking the lowest inflation rate since February 2011.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, also dropped 0.2% over the previous month. Despite the negative reading, annual core inflation was unchanged at October's 1.5%. Finally, annual average HICP inflation in November fell to 3.4%, which was a notch down from the 3.5% recorded in the previous month.
The Bank of Italy sees HICP inflation averaging 3.0% in 2012, before dropping to 1.8% in 2013.
Author: Armando Ciccarelli, Head of Data Solutions