Italy: Inflation remains unchanged in November
December 16, 2010
In November, consumer prices (including tobacco) remained flat over the previous month, stepping down from the 0.2% rise recorded in October and confirming the result of the preliminary estimate, released on 30 November. As a result, annual inflation remained unchanged at October's 1.7%, matching market expectations. Lower prices for hotels, cafes and restaurants as well as transport offset higher prices for communications and housing. The core inflation index, which excludes more volatile categories such as non-processed food and energy, dropped 0.1% over the previous month, contrasting October's 0.3% month-on-month increase. As a result, annual core inflation remained unchanged at October's 1.5%, while annual average harmonised inflation inched up from 1.5% in October to 1.6% in November. The Bank of Italy expects harmonized inflation to average 1.5% this year, and 1.9% next year.
Author: Armando Ciccarelli, Head of Data Solutions