Consumer prices

In February 2014, the Italian consumer price index for the whole nation (NIC) decreased by 0.1% compared with the previous month and rose by 0.5% with respect to February 2013 (0.2 lower than in January 2014). Final data confirm the provisional ones.

The slowdown of inflation was mainly due to volatile components, such as unprocessed food and energy. Excluding these components, core inflation was stable at 1.0%. Also excluding only energy, the inflation was stable at the same value observed in January 2014 (+1.0%).

The decrease on monthly basis of All items index was mainly due to the decline of prices of Fresh vegetables and Fresh fruit (respectively -4.4% and -0.7% compared with January 2014) ‒ on which seasonal factors had an impact ‒ and to monthly decrease of prices of Non-regulated energy products (-0.9%); the monthly decrease of prices of Services related to communication (-0.7%) had a downward impact, too.

The annual rate of change of prices of Goods fell to -0.1% (from +0.3% in January 2014), while the annual rate of change of prices of Services rose to 1.2% (+1.1% in the previous month). As a consequence, the inflationary gap between Services and Goods increased by 0.5 percentage points with respect to January 2014.

Prices of Grocery and unprocessed food decreased by 0.2% on monthly basis and rose by 1.0% on annual basis (down from +1.3% in January 2014).

In February 2014, the Italian harmonized index of consumer prices (HICP) decreased by 0.3% compared with the previous month and rose by 0.4% with respect to February 2013 (the flash estimate was 0.5%), down from 0.6% in January 2014. The decrease on monthly basis was also due to the winter sales of Clothing and footwear (-3.7% compared with January 2014), which are not taken into account in the national index NIC.

Core inflation measured by Italian HICP was stable at 1.0%; at the same way, excluding energy, food, alcohol and tobacco, the inflation was stable at the same value registered in January 2014 (+0.9%); while Italian HICP, excluding energy, increased by 0.9% on annual basis, down from 1.2% in January 2014.

In February 2014, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) decreased by 0.3% compared with January 2014 and rose by 0.1% with respect to February 2013. As in January 2014, the difference between the HICP and HICP-CT growth rates was equal to 0.3 percentage points. This difference incorporates the effects of changes in indirect taxes, 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 HICP, assuming their full and instantaneous pass-through on the prices paid by the consumers.

• Date of next release: 31 March 2014