Italy: Inflation picks up in August
August 31, 2011
According to a preliminary estimate released by ISTAT on 31 August, consumer prices rose 0.3% in August, which was in line with the 0.3% increase recorded in July and slightly up from the 0.2% price rise recorded in the same month last year. Accordingly, annual inflation picked up from 2.7% in July to 2.8% in August, which was a notch above market expectations. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.3%, in line with a similar increase in July. Accordingly, annual core inflation was unchanged for a third consecutive month at 2.1%, the highest level since February 2009. Annual HICP inflation inched up from 2.1% in July to 2.2%. The Bank of Italy sees HICP inflation averaging 2.7% this year, before dropping to 1.9% next year.
Author: Armando Ciccarelli, Head of Data Solutions