Italy: Inflation contrasts expectations and picks up in April
April 29, 2011
According to a preliminary estimate release by ISTAT on 29 April, consumer prices rose 0.5% in April, which was a tad above the 0.4% increase recorded in March. Building on the monthly increase, annual inflation inched up from 2.5% in March to 2.6%, which marked the highest reading since November 2008 and defied market expectations, which saw inflation inching down to 2.4%. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, also rose 0.5% over the previous month, which was above March's 0.2% increase, pushing annual core inflation from 1.7% in March to 1.8%. Annual average HICP inflation inched up from 1.9% in March to 2.0%. The government expects HICP inflation to average 2.2% in 2011, and 2.0% next year. The Bank of Italy sees HICP inflation averaging 2.1% this year, while sharing the government's view for HICP inflation in 2012.
Author: Armando Ciccarelli, Head of Data Solutions