Italian HICP inflation average for 2015 likely to rise

Flash Italian HICP inflation was recorded at 0.2% yoy in June, unchanged from the May reading. The national CPI also remained unchanged at 0.1% yoy in June. In terms of the component breakdown, the energy component fell slightly from -5.7% yoy to -5.8% yoy, shaving 1bp from the headline figures. 

Food prices remained unchanged at 1.5% yoy. On the core components front, the services component remained unchanged, while non-energy industrial goods inched up from 0.8% yoy to 0.9% yoy, adding 3bp, led by a rise in durable goods from -0.4% yoy to 0.0% yoy. Core inflation remained unchanged at 0.7% yoy.

"Looking ahead, Italian HICP inflation is expected to average 0.6% in 2015 and 1.6% yoy in 2016. The core component should average 1.1% in 2015 and 1.3% in 2016", says Societe Generale.