Consumer prices

In October 2013, the Italian consumer price index for the whole nation (NIC) decreased by 0.2% compared with the previous month and rose by 0.8% with respect to October 2012 (0.1 lower than in September 2013). The provisional estimate was 0.7%.

The slowdown in the Italian inflation was mainly due to the slowdown of annual dynamics of prices of Food and non-alcoholic beverages, Housing, water, electricity, gas and other fuels; the slowdown of Education and the large decrease on annual basis of prices of Communication provided their contribution too.

The fall on monthly basis of All items index was due to the decreases compared with September 2013 of prices of Communication (-4.5%), Transport (-0.6%), Restaurant and hotels (-0.5%), Food and non-alcoholic beverages and Housing, water, electricity, gas and other fuels (respectively -0.2% and -0.1%).

With regard to Communication, the cause was the large decrease of prices of Mobile telephone services (-8.1% on monthly basis; -16.3% on annual basis).

Concerning Transport, the main causes were the decrease of prices of Fuels and lubricants (-1.7% compared with the previous month; -4.8% compared with October 2012) and the decline of prices of Passenger transport by air (-8.1% on monthly basis; +15.2% on annual basis, slowing down from 23.5% of September) on which seasonal factors had an impact.

Seasonal factors also had an impact on the price decrease of Restaurant and hotel, which was owing to the decline of price of Accommodation services (-2.3% on monthly basis; +2.5% on annual basis).

With regard to Housing, water, electricity, gas and other fuels, the main causes were the decreases of the administered prices of Gas (-1.1% compared with September 2013; -3.6%  on annual basis) and of Electricity (-0.6% on monthly basis; -0.7% with respect to October 2012).

Finally, concerning Food and non-alcoholic beverages, the main causes were the declines, due partially to seasonal factors, of prices of Fresh fruit (-3.5% compared with the previous month; +0.9% with respect to October 2012, from +5.2% observed in the previous month) and of Fresh vegetables (-1.4% on monthly basis; -6.7% on annual basis) .

Italian core inflation, calculated excluding energy and unprocessed food, was stable at 1.2%.
Italian consumer price index, excluding energy, increased by 1.1% with respect to October 2012 (0.2 lower than in September 2013).

• In October 2013, according to preliminary estimates, the Italian harmonized index of consumer prices (HICP) rose by 0.1% compared with the previous month and by 0.8% with respect to October 2012 (0.1 lower than in September 2013). Also in this case, the preliminary estimate was 0.7%.
  Core inflation measured by Italian HICP was 1.2%, down from 1.3% in September. Italian harmonized index of consumer prices, excluding energy, increased by 1.2% with respect to October 2012 (0.1 lower than in September).
• In October 2013, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) declined by 0.4% compared with the previous month and rose by 0.3% with respect to October 2012. The difference between the HICP and HICP-CT growth rates was equal to 0.5 percentage points. It incorporates the impact of the increase of the standard VAT rate from 21% to 22%, in force from the 1st October 2013 (Law n. 99 of the 9th August 2013) and represents the upper limit of the impact on the inflation measured by HICP, assuming an instantaneous pass-through of VAT rate change on the prices paid by the consumer.