Consumer prices

In March 2014, the Italian consumer price index for the whole nation (NIC) rose by 0.1% compared with the previous month and by 0.4% with respect to March 2013 (0.1 lower than in February 2014). Final data confirm the provisional ones.

The slowdown of inflation was mainly due to the decreases of prices of Non-regulated energy products and of Unprocessed food and to the reduction of inflationary trends for most of the others aggregates of goods and services.

Excluding unprocessed food and energy, core inflation was 0.9% (0.1 lower than in February 2014); excluding only energy, the inflation was 0.8%, down from 1.0% in February 2014.

The increase on monthly basis of All items index was mainly due to the increase – on which also seasonal factors had an impact – of prices of Services related to transport (+0.6%) and Services related to recreation, including repairs and personal care (+0.2%); the monthly rise of prices of Services related to housing (+0.3%) had an upward impact, too.

The annual rate of change of prices of Goods fell to -0.3% (from -0.1% in February 2014) and the annual rate of change of prices of Services was +1.0% (down from +1.2% in the previous month). As a consequence, the inflationary gap between Services and Goods did not change with respect to February 2014.

Prices of Grocery and unprocessed food declined by 0.3% on monthly basis and rose by 0.7% on annual basis (down from +1.0% in February 2014).

In March 2014, the Italian harmonized index of consumer prices (HICP) rose by 2.2% compared with the previous month and by 0.3% with respect to March 2013 (0.1 lower than in February 2014). Also in this case, final data confirm rapid estimates. The monthly increase was mainly due to the end of winter sales of Clothing and footwear (+29.4% with respect to February 2014), which are not taken into account in the national index NIC.

Core inflation measured by Italian HICP was 0.9%, down from 1.0% in February 2014; excluding energy, food, alcohol and tobacco, the inflation was stable at 0.9%. Italian HICP, excluding energy, increased by 0.8% with respect to March 2013 (0.1 lower than in February 2014).

In March 2014, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) rose by 2.2% compared with February 2014 and declined by 0.1% with respect to March 2013. The difference between the HICP and HICP-CT growth rates was equal to 0.4 percentage points (0.1 higher than in February). This difference incorporates the effects of changes in indirect taxes, which occurred in the last twelve months and, in particular, the impact of the rise of fuels excises with effect from the 1st March (Law n. 98 of the 9th August 2013) and 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 prices paid by consumers.