Italy: Inflation steps up to two-year high
March 31, 2011
In March, consumer prices rose 0.4%, according to a preliminary flash estimate released by ISTAT on 30 March. The reading was a tad above the 0.3% increase recorded in February and was mainly driven by higher prices for transport. Building on the monthly increase, annual inflation inched up from 2.4% in February to 2.5%, reaching its highest level since November 2008. The core inflation index, which excludes more volatile categories such as non-processed food and energy, rose 0.2% over the previous month, a notch down on February's 0.3% increase. Despite the more subdued monthly increase, annual core inflation rose from 1.7% in February to 1.8%. Finally, annual average HICP inflation inched up from 1.8% in February to 1.9%. The Bank of Italy expects HICP inflation to average 2.1% this year, and 2.0% next year.
Author: Armando Ciccarelli, Head of Data Solutions