Italian consumer price index rises on monthly basis but falls on year-on-year basis in June

Italy’s consumer price index for June rose 0.1 percent on a month-on-month basis, but dropped 0.4 percent on year-on-year basis, confirming the flash reading, according the country’s official statistics office ISTAT. Core inflation, stripping unprocessed food and energy, came in at 0.5 percent, as compared with 0.6 percent registered in May. Excluding energy, Italy’s inflation was 0.4 percent, 0.1 percentage points lower than May’s print.

Prices of non-energy industrial goods slowed to 0.5 percent in June from May’s 0.7 percent. Drop of non-regulated energy goods prices slowed to 8.1 percent from 10 percent. Tobacco prices accelerated 2.9 percent in June from May’s 2 percent.

The all items index rose on monthly basis in June on the increase in prices non-regulated energy products, tobacco and services that grew 2.1 percent, 0.6 percent and 0.4 percent respectively. Meanwhile, the annual rate of price change of goods was -0.8 percent. The inflationary gap between services and goods dropped 0.2 percentage points as compared to May.

The Italian harmonized index of consumer prices, measure by the ECB, rose 0.2 percent on a month-on-month basis, whereas it dropped 0.2 percent on a year-on-year basis in June 2016. The flash estimate was for -0.3 percent.