Italy: Inflation increases in March

According to revised data released by the National Statistical Institute (Istat) on 17 April, consumer prices rose 0.3% on a month-on-month basis in March (previously reported: +0.4month-on-month), up from February’s flat print. The uptick was driven by higher prices for food and non-alcoholic beverages, restaurants and hotels, and transport services.

Meanwhile, inflation came in at 0.8% in March (previously reported: +0.9%), edging up from February’s 0.5% print.

Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, grew a revised 0.3% in March month-on-month (previously reported: +0.5 mom), above February’s 0.1% increase. Consequently, core inflation came in at 0.7% in March (previously reported: +0.9%), slightly up from 0.6% in the previous month.

Italy Inflation Forecast

FocusEconomics Consensus Forecast panelists expect average inflation of 1.2% in 2018, which is down 0.1 percentage points from last month’s projection. For 2019, panelists expect inflation to average 1.4%.