Italian headline inflation eases sequentially in November
Italian headline inflation eased on a sequential basis in November and rose on a year-on-year basis. Sequentially, the consumer price index fell 0.2 percent, whereas it rose 1.6 percent year-on-year. The flash estimate was 1.7 percent.
The stability of inflation in November was due to opposite movements. The slight accelerations of prices of different types of products were countered by the deceleration of prices of non-regulated energy products that, with prices of regulated energy products, explain about half of the general inflation rate and by the wider fall of prices of durable goods.
Core inflation, which excludes energy and unprocessed food, came in at 0.7 percent, whereas inflation excluding energy also came in at 0.7 percent.
The fall on sequential basis of All items index was especially because of prices of services related to recreation, including repair and personal care and of services related to transport, only partly countered by the rise of unprocessed food.
On a year-on-year basis, goods prices eased to 1.7 percent and that one of prices of services rose 1.4 percent. Therefore, the inflationary gap between services and goods was still negative and equal to -0.3 percentage points. Prices of grocery and unprocessed food rose 0.5 percent sequentially and 0.9 percent year-on-year.
Italian harmonized index of consumer prices dropped 0.3 percent sequentially and rose 1.6 percent year-on-year. The flash estimate was 1.7 percent.
At 13:00 GMT the FxWirePro's Hourly Strength Index of Euro was slightly bearish at -61.5854, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 68.711. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex