Italy: Inflation rises to highest level in almost three years
September 30, 2011
According to a preliminary estimate released by ISTAT on 30 September, consumer prices rose 0.1% in September, which was down from the 0.3% increase recorded in August but contrasted the 0.2% price drop recorded in the same month last year. Accordingly, annual inflation picked up from 2.8% in August to 3.1% in September, which was above market expectations of 2.7% increase and marked the highest level since October 2008. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, was flat over the previous month, which was down from August's 0.3% increase. Despite the flat reading, annual core inflation rose from 2.2% in August to 2.5%, the highest level since January 2009. Annual HICP inflation jumped from 2.3% in August to 3.5% in September. The Bank of Italy sees HICP inflation averaging 2.7% this year, before dropping to 1.9% next year.
Author: Armando Ciccarelli, Head of Data Solutions