Inflation is a process of continuous, generalised increase in the prices of goods and services for household consumption. Rising inflation refers to a situation in which the rate of price increases is accelerating, while falling inflation describes the case in which prices are rising but at a decreasing rate.
Inflation is measured through the construction of the consumer price index, that measures changes in prices of a 'basket' of goods and services, which is representative of households consumer expenditure in a specific year.
Istat calculates three consumer price indices:
Consumer Price Indices
To calculate the harmonised index of consumer prices (HICP) Istat uses a harmonised approach, a single set of definitions and a specific basket of good and services: