Italy: Inflation drops to an over one-year low in April
According to a second estimate released by the National Statistical Institute (ISTAT) on 16 May, consumer prices rose 0.1% month-on-month in April. The reading was down from a 0.3% increase in March and confirmed the preliminary estimate. The figure mainly reflected higher prices for processed food including alcohol; non-regulated energy products; and services related to recreation, which were affected by seasonal factors. These increases were almost entirely offset by lower prices for regulated energy products, due to lower tariffs for electricity and gas. Meanwhile, inflation came in at 0.5% in April, below the previous month’s 0.8% print and the lowest figure since November 2016.
Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, grew 0.4% in April month-on-month, up slightly from March’s 0.3% rise. However, core inflation moderated to 0.5% in April, down from 0.7% in March. Finally, harmonized inflation came in at 0.6% (March: 0.9%).