Italy: Inflation remains stable in May
May 31, 2011
According to a preliminary estimate release by ISTAT on 31 May, consumer prices rose 0.1% in May, which was below the 0.5% increase recorded in April but in line with the 0.1% increase recorded in the same month last year. Accordingly, annual inflation remained unchanged at April's 2.6%, confirming inflation at its highest level since November 2008 and matching market expectations. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, remained flat over the previous month, coming in below April's 0.5% increase. Annual core inflation was also unchanged at April's 1.8%. Finally, annual average HICP inflation inched up from 2.0% in April to 2.1%. 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