Italy: Inflation eases further in March
April 14, 2014
According to more detailed data for March, consumer prices rose 0.1% over the previous month. The figure met the preliminary estimate and contrasted the 0.1% fall recorded in February. The increase was driven by higher prices for transport and for services related to recreation, repairs and personal care. Annual inflation met market expectations and inched down from 0.5% in February to 0.4% in March, marking the lowest rate since October 2009. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose from a flat reading in February to 0.2% in March. Annual core inflation inched down from 1.0% in February to 0.9% in March. Finally, annual HICP inflation averaged 0.9% in March, which was below the 1.0% recorded in February and marked the lowest level since June 2010. FocusEconomics Consensus Forecast panelists expect inflation to average 0.8% in 2014, which is down 0.2 percentage points from the previous month's projection. For 2015, panelists expect inflation to average 1.2%.
Author: Dirina Mançellari, Senior Economist