Italy’s final HICP inflation likely confirmed flash reading of 0.1 pct in September

Italy’s final HICP inflation is expected to come in the same as the flash estimate in September. According to a Societe Generale research note, the Italian final HICP inflation is expected to have confirmed the flash reading of 0.1 percent year-on-year.

Non-energy as well as energy industrial goods are likely to have contributed positively to the headline inflation figure in September. On the other hand, food prices dropped to 0.4 percent year-on-year in the month from 1 percent, according to the flash estimate. Thus food prices are likely to have been a drag on the headline rate. The decline in food prices is because of a sharp reversal in unprocessed food.

The flash reading showed that Italy’s core inflation stayed subdued but stable at 0.4 percent year-on-year, with services inflation remaining unchanged at 0.6 percent year-on-year. Non-energy industrial goods also rebounded a bit to 0.4 percent year-on-year.