Italy: Inflation slows in February to lowest level in over four years
February 28, 2014
According to final data for February, consumer prices dropped 0.1% over the previous month. The reading contrasted the 0.2% increase recorded in January and market expectations of a 0.1% rise. The drop was driven by lower prices for communications and transport. Annual inflation slowed from 0.7% in January to 0.5% in February, marking the lowest inflation since October 2009.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, was unchanged over the previous month in February (January: +0.1% month-on-month). Annual core inflation was stable at January's 1.0%. Finally, annual HICP inflation averaged 1.0% in February, which was below the 1.1% recorded in January.
FocusEconomics Consensus Forecast panelists expect inflation to average 1.2% in 2014, which is unchanged from the previous month's projection. For 2015, panelists expect inflation to average 1.3%.
Author: Armando Ciccarelli, Head of Data Solutions