Italy: Inflation ticks up in October on higher energy prices

According to provisional data released by the National Statistical Institute (ISTAT) on 31 October, consumer prices remained unchanged month-on-month in October, following September’s 0.5% drop. The figure reflected higher energy prices being offset by lower prices for services related to transport, and recreation and culture—mainly attributable to seasonal factors. Meanwhile, inflation came in at 1.6% in October, above September’s 1.4% print.

Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, dropped 0.3% month-on-month in October, a smaller fall than September’s 0.7% decline. Meanwhile, core inflation inched up to 0.8% in October from September’s 0.7%, and harmonized inflation rose to 1.7% from the previous month’s 1.5%.

FocusEconomics Consensus Forecast panelists expect inflation of 1.5% in 2019, which is unchanged from last month’s projection. For 2020, panelists expect inflation to average 1.7%.