Consumer prices

In August 2016 the Italian consumer price index for the whole nation (NIC) increased by 0.2 on monthly basis and declined by 0.1% with respect to August 2015 (the same rate of change registered in the previous month). The flash estimate was confirmed.

The persistence of the negative rates of change of consumer prices on annual basis is the synthesis of price dynamics of opposite sign, which offset almost completely. On the one hand, the annual decrease of prices of Non-regulated energy products reduces its amplitude (-7.0%, from -8.0% in the previous month) and the growth of prices of Unprocessed food accelerates (+ 2.4%, from + 1.5% in July). On the other hand the prices of Services related to communication reverse the trend (-1.4%, from +0.4% the previous month) and the growth of prices of Services related to transport goes to zero (from + 0.7% in July).

Excluding energy and unprocessed food, core inflation was +0.4% (down from +0.6 registered in July); excluding energy, the inflation was +0.6% (the same rate of change observed in the previous month).

The increase on monthly basis of All items index was mainly due to the rise of prices of Services related to transport (+2.2%), of Unprocessed food (+0.9%) and of Services related to recreation, including repair and personal care (+0.4%).

The annual rate of change of prices of Goods was -0.5% (up from -0.6% in July) and the annual rate of change of prices of Services was +0.5% (down from +0.6% in the previous month). Therefore, the inflationary gap between Services and Goods decreased by 0.2 percentage points with respect to July.

Prices of Grocery and unprocessed food increased by 0.3% on monthly basis and by 0.6 on annual basis (0.2 percentage points higher than that of the previous month).

In August 2016 the Italian harmonized index of consumer prices (HICP) decreased by 0.1% compared with both the previous month and August 2015 (the flash estimate was zero), from -0.2 registered in July 2016.

Core inflation measured by Italian HICP was +0.4% (down from +0.6% in July 2016); also the inflation excluding Energy, food, alcohol and tobacco was +0.4% (0.1 lower than in July 2016); the inflation excluding Energy was +0.6% (the same rate of change observed in the previous month).

In August 2016, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) declined by 0.1% compared with both the previous month and August 2015 (the same rate of change of HICP). Therefore, 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 has to be noted that this difference 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.