Italian headline inflation stable in October

Italian headline inflation came in stable in October. According to preliminary estimates, the consumer price index rose 0.3 percent year-on-year in the month, the same as in the prior month. The stability of the growth on annual basis of all items index was because of opposite dynamics and due to the decrease of prices of regulated energy products, and the rise in prices of services related to transport.

The core rate, excluding energy and unprocessed food and inflation excluding energy came in at 0.8 percent, a rise from 0.6 percent.

Sequentially, the prices of regulated energy produces rose 2.7 percent, whereas those of non-regulated energy products rose 0.9 percent. These rises were countered by the decrease of prices of services related to transport and of services related to recreation, including repair and personal care, determining the zero variation of all items index.

Goods prices dropped 0.4 percent and that one of prices of services rose 1.1 percent. As a consequence, the inflationary gap between services and goods was still positive and wider.

The preliminary estimates showed that the Italian harmonised index of consumer prices rose 0.2 percent sequentially and year-on-year.