Italy: Inflation slows to lowest level in more than two years
April 2, 2013
In March, consumer prices rose 0.3% over the previous month, which was up from the 0.1% rise recorded in February and marked the highest increase in seven months. The monthly rise was driven by higher prices for transport as well as for hotels and restaurants. Despite the March increase, annual inflation dropped from 1.9% in February to 1.7% in March, which represents the lowest inflation rate since September 2010. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.2% over the previous month, which was up from February's flat reading. However, annual core inflation fell from 1.5% in February to 1.4% in March. Finally, annual HICP inflation averaged 2.9% in March, which was down from the 3.1% recorded in February. FocusEconomics Consensus Forecast panellists expect inflation to average 2.1% in 2013, which is unchanged from the previous month's projection. For 2014, panellists expect inflation to average 1.8%.
Author: Armando Ciccarelli, Head of Data Solutions