Italy: Inflation remains stable in July
July 29, 2011
According to a preliminary estimate released by ISTAT on 29 July, consumer prices rose 0.3% in July, up from the 0.1% increase recorded in June and mirroring the result seen the same month last year. Accordingly, annual inflation remained unchanged at June's 2.7%, which was above market expectations of a 2.6% rise. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.3%, in line with a similar sized increase in June. Accordingly, annual core inflation was unchanged at 2.1%, the highest level since March 2009. Finally, annual average HICP inflation dropped notably from 3.0% in June to 2.1%. The Bank of Italy sees HICP inflation averaging 2.7% this year, while dropping to 1.9% next year.
Author: Armando Ciccarelli, Head of Data Solutions