Italian consumer price inflation rises in July

The preliminary estimates released by Italy’s official statistics institute, ISTAT, showed that the nation’s consumer price inflation rose 0.1 percent sequentially in July and 1.1 percent year-on-year, down from 1.2 percent year-on-year rise in June.

The lower growth of all items index was mainly because of the slowdown of growth of prices of both regulated energy products and non-regulated energy products and of services related to transport. It was because of the drop of prices of services related to communication as well. Stripping energy and unprocessed food, core inflation was up 0.8 percent, while inflation excluding energy was stable.

The rise on sequential basis of all items index was mainly because of services prices related to transport and of the services related to recreation, including repair and personal care, partially countered by the drop of prices of food including alcohol and energy.

The annual rate of change of prices of goods was 0.8 percent and of services was 1.3 percent. Therefore, the inflationary gap between services and goods was positive again. Prices pf grocery and unprocessed food dropped 0.6 percent sequentially and rose 0.8 percent year-on-year.

Inflation gauged by HICP dropped 1.9 percent sequentially and rose 1.2 percent in July. The sequential drop was mainly because of the start of the summer sales. The core inflation measured by HICP was 0.8 percent.

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