In December 2014, the Italian consumer price index for the whole nation (NIC) held steady on both monthly and annual basis (the annual rate of change observed in November 2014 was +0.2%). Final data confirm the provisional ones.
The dynamics on annual basis of the All items index was mainly due to the widening of the annual decrease of prices of Non-regulated energy products (-8.0%, from -3.1% in November 2014) which was determined by the further marked decline of prices of fuels.
Excluding unprocessed food and energy, core inflation was 0.6% (0.1 higher than in the previous month); excluding only energy, the inflation was 0.5%, down from 0.6% in November 2014.
The stability with respect to November 2014 of All items index was essentially synthesis of the monthly decline of prices of Non-regulated energy products (-3.6%) and the monthly increases of prices of Services related to transport (+2.6%), on which seasonal factors had an impact.
The annual rate of change of prices of Goods was -0.8% (twice the decline observed in the previous month) and the annual rate of change of prices of Services was +1.0% (up from +0.9% in November 2014). As a consequence, the inflationary gap between Services and Goods increased by 0.5 percentage points with respect to November 2014.
Prices of Grocery and unprocessed food rose by 0.1% on monthly basis and decreased by 0.2% on annual basis (down from +0.4% in November 2014).
The average annual inflation rate for 2014, measured by NIC, was 0.2%, with a marked slowdown from 1.2% registered for 2013.
In December 2014, the Italian harmonized index of consumer prices (HICP) held steady with respect to the previous month and declined by 0.1% with respect to December 2013 (from +0.3% in November 2014). Also in this case, the flash estimate was confirmed.
Core inflation measured by Italian HICP was 0.6%, up from 0.5% in November 2014. An increase of one tenth of a percentage point was also registered for the inflation calculated excluding energy, food, alcohol and tobacco (which was 0.7%, up from 0.6% in November 2014). Excluding energy, the inflation fell to 0.5% (from 0.6% in the previous month).
The average annual inflation rate for 2014, measured by Italian HICP, was equal to 0.2%, more than one percentage point less than in 2013 (+1.3%).
In December 2014, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) held steady compared with November 2014 and declined by 0.1% with respect to December 2013 (as the HICP). Therefore, as in the previous two months, the difference between HICP and HICP-CT growth rates – which incorporates the effects of changes in indirect taxes, occurred in the last twelve months – was zero. It should be noted that the difference between HICP and HICP-CT growth rates 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. The annual average rate of change of the Italian HICP-CT for 2014 was -0.1%.