Consumer prices

In April 2014, the Italian consumer price index for the whole nation (NIC) rose by 0.2%  compared with the previous month and by 0.6% with respect to April 2013 (0.2 higher than in March 2014). Final data confirm the preliminary ones.

The speed up of inflation was mainly due to the acceleration of the annual growth of prices of Services related to transport and to the reduction of the decline, on annual basis, of prices of Non-regulated energy products.

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

The increase on monthly basis of All items index was mainly due to the rise ‒ on which seasonal factors, as Easter holidays, had an impact ‒ of prices of Services related to transport (+2.2%) and Services related to recreation, including repairs and personal care (+1.0%).

The annual rate of change of prices of Goods was -0.2% (from -0.3% in March 2014) and the annual rate of change of prices of Services was +1.4% (up from +1.0% in the previous month). As a consequence, the inflationary gap between Services and Goods increased by 0.3 percentage points with respect to March 2014.

Prices of Grocery and unprocessed food held steady on monthly basis and rose by 0.5% on annual basis (down from +0.7% in March 2014).

In April 2014, the Italian harmonized index of consumer prices (HICP) rose by 0.5% compared with both the previous month and April 2013 (the flash estimate was +0.6%), up from the annual rate in March 2014 (+0.3%). The monthly increase was also due to the very end of winter sales of Clothing and footwear (+3.1% with respect to March 2014), which are not taken into account in the national index NIC.

Core inflation measured by Italian HICP was 1.0%, up from 0.9% in March 2014; excluding energy, food, alcohol and tobacco, the inflation was 1.1% from 0.9% registered in the previous month. Italian HICP, excluding energy, increased by 0.9% with respect to April 2013 (0.1 higher than in March 2014).

In April 2014, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) rose by 0.6% compared with March 2014 and by 0.2% with respect to April 2013. The difference between the HICP and HICP-CT growth rates was equal to 0.3 percentage points (0.1 lower than in March). 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 that took place from the 1st of 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.