Consumer prices

In October 2016 the Italian consumer price index for the whole nation (NIC) declined by 0.1 on monthly basis and by 0.2% with respect to October 2015 (the flash estimate was -0.1%), from +0.1% in September 2016.

The decline on annual basis of the All items index was still determined by Energy products whose decrease was enlarged slightly (-3.6%, from -3.4% in September 2016), due to greater price drop of Regulated energy products (-6.0%, from -3.8% in September 2016) partially offset by the lower drop of Non-regulated energy products (-0.9%, from -2.7% in the previous month). Other deflationary contributions were brought by other types of products: among these the most notable were the reversal trend of Unprocessed food (-0.4%, from +0.4% in September 2016) and the zeroing of the growth of prices of Services related to recreation, including repair and personal care (from + 0.6% in September 2016).

Therefore, the inflation excluding energy slowed down (+0.2%, from +0.5% in the previous month); likewise excluding energy and unprocessed food, core inflation was +0.2%, down from +0.5% in September 2016.

The slight decrease on monthly basis of All items index was due to declines of prices of Services related to transport (-1.2%) and of Services related to recreation, including repair and personal care (-0.4%) only partially offset by the increase of prices of Non-regulated energy products.

The annual rate of change of prices of Goods was -0.4% (down from -0.2% in September 2016) and the annual rate of change of prices of Services was +0.1% (down from +0.4% in the previous month). Therefore the inflationary gap between Services and Goods decreased by 0.1 percentage points with respect to September 2016.

Prices of Grocery and unprocessed food increased by 0.1 on monthly basis and decreased by 0.2% on annual basis (the annual rate of change was equal zero in the previous month).

In October 2016 the rate of change of Italian harmonized index of consumer prices (HICP) increased by 0.2% with respect to the previous month and declined by 0.1% with respect to October 2015 (the annual rate of change observed in September was +0.1%). The flash estimate was confirmed.

Core inflation measured by Italian HICP was +0.2% (down from +0.5% in September 2016); both the inflation excluding Energy, food, alcohol and tobacco and that one excluding Energy were +0.2% (both from +0.4% in September 2016).

In October 2016, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) increased by 0.2% compared with the previous month and decreased by 0.2% with respect to October 2015 (0.1 lower than HICP). Therefore, the difference between HICP and HICP-CT rates of change – which incorporates the effects of changes in indirect taxes occurred in the last twelve months – was positive and equal to 0.1.