Italian consumer price index drops further in May on fall in energy prices

Italian consumer price index dropped further in May. On a year-on-year basis, the consumer price index came in at -0.2 percent. On a sequential basis, the headline inflation came in at -0.2 percent. The flash estimate was -0.1 percent.

The decrease on a year-on-year basis was mainly driven by the fall in prices of non-regulated energy products. Prices fell 12.2 percent from -7.6 percent in the prior month.

Meanwhile, excluding energy and unprocessed food, the core rate of inflation came in at +0.8 percent. Excluding energy, inflation came in at +1 percent.

The decrease on a month-on-month basis was mainly because of the decrease of prices of non-regulated energy products, only partially countered by the rise of prices of unprocessed food.

Prices of grocery and unprocessed food rose 0.5 percent on a month-on-month basis and by 2.4 percent on a year-on-year basis.

The Italian harmonized index of consumer prices dropped 0.3 percent on a monthly basis and on a year-on-year basis as well. The flash estimate was 0.2 percent.