Italy: Harmonized inflation rises in June
Latest reading: Harmonized inflation inched up to 1.8% in June from May’s 1.7%, but remained below the Euro area average of 2.0%, partly reflecting weaker domestic demand pressures on prices in Italy than in most of the rest of the bloc. The headline increase reflected stronger price pressures for food, restaurants and hotels plus recreation and culture. In addition, transportation costs fell at a milder pace. In contrast, housing and utilities prices rose at a softer rate.
The trend was unchanged, with annual average harmonized inflation coming in at May’s 1.5% in June.
Meanwhile, consumer price inflation rose to 1.7% in June from May’s 1.6%.
Lastly, harmonized consumer prices increased 0.24% over the previous month in June, rebounding from the 0.08% drop seen in May.
Panelist insight: Commenting on the outlook, EIU analysts said:
“Services inflation remains the main driver of price growth, but should gradually ease in the coming months as wage growth continues to slow. Even if consumer price inflation is set to tick up further in the coming months, owing to base effects, it is still substantially weaker in Italy and the euro area than it was during most of 2022-23.”