Italian consumer price index rises sequentially in March

Italian consumer price index rise sequentially in March. The preliminary estimates showed that the headline inflation came in at 0.3 percent sequentially and at 1 percent year-on-year. The stability of inflation was due to opposite movements. The acceleration of prices of non-regulated energy products were countered by the deceleration of prices of unprocessed food of services related to transport and of Tobacco.

The core inflation, which strips energy and unprocessed food, accelerated to 0.5 percent, and inflation excluding energy was 0.7 percent. The increase on monthly basis of all items index was mainly driven by prices of non-regulated energy products of Tobacco and of services related to transport, only partly countered by the decrease of those of unprocessed food.

The annual pace of change of prices of goods rose 1.5 percent and that one of prices of prices of services was 0.7 percent. Thus the inflationary gap between services and goods was negative and equal to -0.8 percentage points.

Prices of grocery and unprocessed food dropped 0.2 percent sequentially and rose 1.3 percent on year-on-year basis.

The preliminary estimates showed that the Italian harmonized index of consumer prices rose 2.3 percent sequentially in March and 1.1 percent year-on-year. The wide rise on monthly basis was driven by the conclusion of winter sales of clothing and footwear, which are not taken into account in the national index NIC.

At 12:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -44.5245 while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 60.7087 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex