Final May Italian HICP inflation to be unchanged from flash

Flash Italian HICP inflation was 0.2% yoy in May, against a forecast of 0.0% yoy. As for the details, Italian HICP inflation in May rose more than expected due to a more prominent rebound in energy prices, with the energy component rising from -6.4% yoy to -5.7% yoy, adding 7bp, and there was a sharp jump in prices paid for services, with the relevant component rising from 0.2% to 0.5% yoy, adding 13bp. 

The latter benefited from a marked rise in prices paid for accommodation services in May. The food component remained stable, while the non-energy industrial goods component rose from 0.6% to 0.7% yoy, adding 3bp. With goods and services both marching forward, the core component was 0.7% yoy, up from 0.4% in April 2015.

"We expect Italian HICP inflation to average 0.6% in 2015 and 1.5% yoy in 2016. The core component should average 1.1% in 2015 and 1.3% in 2016" said Societe Generale in a report on Monday.