Consumer prices

In December 2013, the Italian consumer price index for the whole nation (NIC) increased by 0.2% compared with the previous month and by 0.7% with respect to December 2012 (the same annual rate of November 2013). Final data confirm the provisional ones.

The stability of Italian inflation was mainly the result of opposite movements: on one hand, the acceleration of the annual dynamics of prices of Food and non-alcoholic beverages, on the other hand, the slowdown of the annual growth of prices of Restaurants and hotels.

The rise with respect to November 2013 of All items index was essentially due to the monthly increases of prices of Transport (+1.1%) and Food and non-alcoholic beverages (+0.7%).

With regard to Transport, the main causes were the large increases of prices of Passenger
transport by air (+9.2% on monthly basis), on which seasonal factors had an impact and whose annual rate of change, nevertheless, was negative (-0.8%, from +14.3% of November 2013), owing to the comparison with December 2012, when the monthly rate of change was much higher (+25.9%).

In the same division, prices of Fuels and lubricants rose by 1.6% on monthly basis and
decreased by 1.8% (from -4.1% of November 2013).

Concerning Food and non-alcoholic beverages, the main cause was the large increase, due
mainly to seasonal factors, of prices of Fresh vegetables (+13.2% compared with November
2013; +3,5% with respect to December 2012, from -4.4% observed as annual rate in the
previous month).

Italian core inflation, calculated excluding energy and unprocessed food, was 0.9%, down from 1.2% in November.

Italian consumer price index, excluding energy, increased by 1.0% with respect to December 2012 (0.1 lower than the rate registered in November 2013).

The average annual inflation rate for 2013 was 1.2%, with a marked slowdown from 3.0%
registered for 2012.

• In December 2013, the Italian harmonized index of consumer prices (HICP) rose by 0.3% on monthly basis and was stable at 0.7% on annual basis (the preliminary estimate was 0.6%).Core inflation measured by Italian HICP was 0.9%, down from 1.1% in November.Italian harmonized index of consumer prices, excluding energy, increased by 0.9% with respect to December 2012 (0.1 lower than in November).The average annual inflation rate measured by Italian HICP for 2013 was equal to 1.3% (2.0 points lower than in 2012).
• In December 2013, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) rose by 0.3% both on monthly and on annual basis. The difference between the HICP and HICP-CT growth rates was equal to 0.4 percentage points (0.1 lower than in October and November). This difference incorporates the effects of changes in indirect taxes imposed on basket products, which occurred in the last twelve months and, in particular, 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). It should be noted that it represents the upper limit of the impact of changes in indirect taxes occurred in the last twelve months on the HICP inflation, assuming their full and instantaneous pass-through on the prices paid by the consumers.