Italy: Inflation unchanged in December
January 16, 2012
In December, consumer prices added 0.4% over the previous month, which contrasted the 0.1% drop recorded in November but was in line with market expectations. Despite the monthly increase, annual inflation was unchanged at November's 3.3%, ending 2011 far above the 1.9% inflation rate recorded at the end of 2010. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.2% over the previous month. Nevertheless, annual core inflation was unchanged at November's 2.4%. Finally, annual average HICP inflation edged up from 2.8% in November to 2.9% in December, broadly in line with Consensus Forecast expectations of an average HICP inflation of 2.8% in 2011. The Bank of Italy currently expects HICP inflation to average 3.1% this year, before dropping to 2.4% next year.
Author: Armando Ciccarelli, Head of Data Solutions