Consumer prices

In January 2017, the Italian consumer price index for the whole nation (NIC) increased by 0.3 on monthly basis and by 1.0% with respect to January 2016 (the flash estimate was +0.9%), up from +0.5% in December 2016.

The increase, in January, of the annual rate of change of All items index was mainly due to the speed-up of the annual growth of prices of Non-regulated energy products (+9.0%, from +2.4% in the previous month) and of Unprocessed food (+5.3%, from +1.8% in December 2016); also the reduction of the annual decrease of prices of Regulated energy products (-2.8%, from -5.8% in the previous month) contributed to the rise of inflation.

The annual rate of change of prices of Goods was +1.2% (up from +0.1% in December 2016) and the annual rate of change of prices of Services was +0.7% (down from +0.9% in the previous month). Therefore, after 46 months, the inflationary gap between Services and Goods was negative and equal to -0.5
percentage points.

Excluding energy and unprocessed food, core inflation was +0.5%, down from +0.6% in the previous month; excluding energy the inflation was +0.8%, from +0.7% in December 2016.

The increase on monthly basis of All items index was mainly due to the rise of prices of Non-regulated energy products (+3.0%), of Unprocessed food (+2.9%) and of Regulated energy products (+1.5%); these increases were partially offset by the monthly decrease of prices and of Services related to transport (-1.7%).

Prices of Grocery and unprocessed food increased by 1.1% on monthly basis and by 1.9% on annual basis (from +0.6% in the previous month).

In January 2017, the rate of change of Italian harmonized index of consumer prices (HICP) decreased by 1.7% with respect to the previous month and increased by 1.0% with respect to January 2016 (the flash estimate was +0.7%), up from +0.5% in the previous month. The difference between the flash and the final estimate of the annual rate of
change of HICP – all items is mainly due to the availability of all the information collected for both full and reduced prices which have improved the accuracy of the final estimates specifically with reference to different special aggregates and in particular to Processed food (including alcohol and tobacco), Unprocessed food and Non energy industrial goods.

Both core inflation measured by Italian HICP and the inflation excluding Energy, food, alcohol and tobacco were +0.5% (both from +0.7% in December 2016); the inflation excluding Energy was +0.9% (the same rate of change registered in December 2016).

In January 2017, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) decreased by 1.7% compared with the previous month and increased by 1.0% with respect to January 2016 (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.