Flash June Italian HICP consumer prices to rise to 0.4%

Italian HICP inflation is expected to print at 0.4% yoy in July, higher than in June (0.2% yoy). Slightly higher gasoline prices to be the main driver behind higher consumer prices as core metrics should remain broadly stable. Italian HICP inflation in June remained unchanged in June at 0.2% yoy as the energy component slowed slightly from -5.7% yoy in May to -5.8% yoy in June, cutting 1bp from the headline figures. 

Food prices remained unchanged at 1.5% yoy. The core component also remained unchanged at 0.7% yoy within which the services component remained unchanged and non-energy industrial goods inched up from 0.8% yoy to 0.9% yoy, adding 3bp, led by a rise in both durables and semi-durables. 

"We expect Italian HICP inflation to average 0.4% in 2015 and 1.4% yoy in 2016. The core component should average 0.8% in 2015 and 1.0% in 2016," says Societe Generale.