The Italian Consumer Price Index (CPI) remained unchanged at 0.8% in June compared to the same month a year earlier, according to the preliminary report from the Italian National Institute of Statistics (Istat) released on Friday. On a monthly basis, the CPI increased by 0.1%.
Factors contributing to CPI stabilisation
The stabilisation of inflation in Italy was primarily driven by unprocessed food, services related to recreation, including repair and personal care, and durable goods.
These categories helped offset the price increases seen in non-regulated energy products, regulated energy products, and processed food.
Despite these pressures, core inflation, which excludes energy and unprocessed food, remained steady at 2.0%. Similarly, inflation excluding energy saw a slight increase to 2.0% from 1.9% in the previous period.
Harmonised index of consumer prices
The Italian harmonised index of consumer prices (HICP) also showed changes. The HICP rose by 0.2% on a monthly basis and was 0.9% higher year-over-year.
The HICP provides a comparable measure of inflation across European Union member states, indicating that Italy’s inflationary trends are in line with broader European patterns.
Economic context and future outlook
Italy’s inflation rate, as reflected in both the CPI and HICP, suggests a relatively stable economic environment despite varying pressures in different sectors.
The steady core inflation rate indicates that underlying price stability is being maintained, even as specific categories such as energy and processed food see price increases.
This balanced inflation scenario suggests that Italy may continue to experience moderate price stability in the near term, provided that external factors, such as global energy prices, remain relatively stable.
The data highlights the importance of monitoring both headline and core inflation to get a comprehensive understanding of the economic conditions.
Policymakers and economic analysts will closely watch these trends to ensure that inflation remains within manageable levels and to anticipate any potential shifts that could impact the broader economy.
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