Italy’s inflation seems to have accelerated further in January, likely to average 1.2 pct in 2017

Italy’s inflation gauged by HICP is expected to have accelerated further in January. According to a Societe Generale research report, the Italian inflation is likely to have accelerated to 0.8 percent year-on-year in January after it rose by four-tenths in December. Meanwhile, inflation measured by the consumer price index is likely to have risen to 0.9 percent year-on-year from 0.5 percent year-on-year.

Core inflation had rebounded three-tenths in December, driven by increase in transport-related services prices. In January, the core measure is expected to have dropped slightly to 0.6 percent year-on-year. Services inflation is expected to have weakened slightly in January, along with stable non-energy industrial goods prices.

The energy component is expected to have continued rebounding and come out of the negative territory in January. Meanwhile, food prices are expected to have stayed greatly unchanged. In 2017, Italy’s inflation is likely to keep accelerating and average 1.2 percent year-on-year, stated Societe Generale. This profile greatly shows the positive effect of prices of energy along with a weak rebound in core inflation.