Italian consumer price down 0.3% on monthly basisStaff writer ▼ | June 20, 2016
In May 2016 the Italian consumer price index for the whole nation (NIC) increased by 0.3% on monthly basis and declined by 0.3% with respect to May 2015, up from -0.5% in April 2016.
Italy The reversal trend of prices of tobacco
Excluding energy and unprocessed food, core inflation was +0.6% (up from +0.5 registered in April 2016) and, excluding energy, the inflation was +0.5% (0.1 percentage points higher than that of the previous month).
The increase on monthly basis of All items index was mainly due to the rise of prices of Tobacco (+2.4%), of Non-regulated energy products (+1.7%) and of Unprocessed food (+1.1%).
The annual rate of change of prices of Goods was -1.0% (up from -1.1% in April 2016) and the annual rate of change of prices of Services was +0.4% (the same rate observed in the previous month). As a consequence, the inflationary gap between Services and Goods decreased by 0.1 percentage points with respect to April 2016.
Prices of Grocery and unprocessed food increased by 0.3% on monthly basis and held steady on annual basis (from -0.2% in the previous month).
In May 2016 the Italian harmonized index of consumer prices (HICP) increased by 0.3 compared with the previous month and decreased by 0.3% with respect to May 2015 (up from -0.4% registered in April 2016). The flash estimate was confirmed.
Core inflation measured by Italian HICP was +0.6% (up from +0.5% in the previous month); also excluding energy, the inflation was +0.6% (up from +0.5% in April); excluding Energy, food, alcohol and tobacco, the inflation registered the same rate observed in the previous month (+0.6%).
In May 2016, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) rose by 0.2% compared with April 2016 and declined by 0.4% with respect to May 2015 (0.1 lower than HICP).
Therefore, the difference between HICP and HICP-CT growth rates - which incorporates the effects of changes in indirect taxes occurred in the last twelve months - returned positive and equal to 0.1.
This difference represents the upper limit of the impact of changes in indirect taxes occurred in the last twelve months on HICP, assuming their full and instantaneous pass-through on prices paid by consumers. ■