Italy: Inflation remains stable in June
June 30, 2011
According to a preliminary estimate released by ISTAT on 31 June, consumer prices rose 0.1% in June, mirroring the result recorded in May and sitting above the flat reading of the same month last year. Accordingly, annual inflation inched up from 2.6% in May to 2.7%, reaching its highest level since October 2008 and matching market expectations. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.3%, up from the flat reading recorded in May. Accordingly, annual core inflation rose from May's 1.8% to 2.1%, the highest level since March 2009. Finally, annual average HICP inflation inched up from 2.1% in May to 2.2%. The government expects HICP inflation to average 2.2% in 2011 and 2.0% next year. The Bank of Italy sees HICP inflation averaging 2.1% this year and shares the government's view for HICP inflation in 2012.
Author: Armando Ciccarelli, Head of Data Solutions