Italy’s and Spain’s final HICP inflation in June likely stayed same as flash estimate

Italy’s final HICP (Harmonised Index of Consumer Prices) inflation for June is likely to show no change from its flash estimate. The final HICP inflation is expected to confirm the flash reading of -0.3 percent year-on-year in June, noted Societe Generale in a research report. According to the flash estimate, the headline figure continued to be steady.

A slight rebound was noticed in the prices of energy and food that was countered by weaker prices of non-energy industrial goods, which fell to 0.4 percent year-on-year from May’s 0.7 percent year-on-year.

For the third straight month, food prices rebounded in June, accelerating to 0.5 percent year-on-year, whereas energy prices rebounded to -7.5 percent year-on-year from May’s -8.4 percent year-on-year. Meanwhile, core inflation weakened slightly to 0.5 percent year-on-year, with prices of services remaining same at 0.5 percent year-on-year and weaker non-energy industrial goods prices.

In the mean time, Spain’s final HICP inflation is also expected to confirm flash estimate of -0.9 percent year-on-year for June, added Societe Generale. The INE had mentioned in its press release that the rebound was mainly due to an increase in electricity and fuel prices.

The HICP inflation of Spain is likely to continue rebounding; however, it is expected to stay in the negative territory until August, according to Societe Generale. The improvement is likely to be mainly because of base effects from energy prices.