Consumer prices

In March 2018, the Italian consumer price index for the whole nation (NIC) increased by 0.3% on monthly basis and by 0.8% compared with March 2017 (it was +0.5% in February 2018). The flash estimate was +0.9%.

In March, the recovery of inflation was mainly due to the wide reduction of the decrease of Unprocessed food (-0.4% from -3.2%). Other contributions came from Tobacco (+2.2% from +0.3% in February) and Services related to transport (+2.5%, from +1.9%).

As a consequence, taking into account the slowdown of the growth of prices of Energy (+3.0% from +3.7% in the previous month), mainly due to Non-regulated energy products (+1.1% from +2.1%), inflation excluding energy and unprocessed food (core inflation) and inflation excluding energy showed an acceleration (slight for the first, +0.7% from +0.6% and wider for the second, +0.5% from +0.2%).

The increase on monthly basis of All items index was mainly due to prices of Tobacco (+1.8%) and Services related to transport (+1.7%, which were affected by seasonal factors).

The annual rate of change of prices of Goods was +0.7% (up from +0.3% in February) and that one of prices of Services was +0.9% (up from +0.8% in the previous month). As a consequence, the inflationary gap between Services and Goods, although less extensive, was positive and equal to +0.2 percentage points (it was +0.5 in February).

Prices of Grocery and unprocessed food increased by 0.1% on monthly basis and by 0.4% on annual basis (reversing the trend from -0.6% in the previous month).

In March 2018, the Italian harmonised index of consumer prices (HICP) increased by 2.3% compared with February and by 0.9% with respect to March 2017 (it was +0.5% in February). The flash estimate was +1.1%. The wide increase on monthly basis was mainly due to the conclusion of winter sales of Clothing and footwear, which are not taken into account in the national index NIC.

In March core inflation, measured by Italian HICP was +0.8% (up from +0.6% in February). Also inflation excluding energy, food, alcohol and tobacco and inflation excluding energy (both of them +0.7%) accelerated (up from +0.5% the first and +0.3% the second).