Flash March Italian HICP inflation to rise

Italian HICP inflation rose to 0.1% yoy in February after its reading of -0.4% in January.

The bulk of the recovery in February came on the back of higher food prices, due to the marked increase in fresh vegetables prices (+11.2% yoy, up from -1.7% yoy in January) and growth in the prices of services related to transport.

With national gasoline- and diesel prices still remaining on an upward trajectory and the other components expected to remain stable, the flash Italian HICP inflation is likely to rise by 0.3% yoy in March.

"We expect Italian Italian HICP inflation to average 0.3% in 2015 and 1.3% yoy in 2016. The core component should average 0.9% in 2015 and 1.2% in 2016" said Societe Generale on Tuesday