Italy: Inflation moderates in May
May 31, 2012
According to a preliminary estimate released by ISTAT on 31 May, consumer prices were unchanged over the previous month, which was below the 0.5% increase recorded in April and market expectations of a 0.1% rise. Higher prices for housing as well as for food and non-alcoholic beverages were offset by lower prices for transport and communication. As a result, annual inflation inched down from 3.3% in April to 3.2% in May. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, dropped 0.1% over the previous month. Meanwhile, annual core inflation inched down from 2.3% in April to 2.2% in May. Finally, annual average HICP inflation was unchanged at April's 3.3%. The Bank of Italy currently expects HICP inflation to average 3.1% this year, before dropping to 2.4% next year.
Author: Armando Ciccarelli, Head of Data Solutions