Consumer prices

In August 2014, the Italian consumer price index for the whole nation (NIC) rose by 0.2% compared with the previous month and declined by 0.1% with respect to August 2013 (from +0.1% in July 2014). Final data confirm the preliminary ones.

The dynamics on annual basis of the All items index was mainly due to the extension of the decrease on annual basis of prices of Energy (in particular of Non-regulated energy products, which declined by 1.2%, down from +0.4% in July 2014) and to the slowdown of the annual growth of price of services; these dynamics were only partially balanced by the reduction of the annual decrease of prices of Unprocessed food (-1.8%, from -2.9% in July 2014).

Therefore, excluding energy, the inflation was 0.4%, up from 0.3% in July 2014; excluding unprocessed food and energy, core inflation was 0.5% (0.1 lower than in July 2014).

The increase on monthly basis of All items index was mainly due to the rise of prices of Services related to transport (+3.8%) on which seasonal factors had an impact. This increase was partially balanced by the monthly decline of prices of Non-regulated energy products (-0.5%).

The annual rate of change of prices of Goods was -0.6% (as in July 2014) whereas the annual rate of change of prices of Services was +0.6%, down from +0.7% in July 2014. As a consequence, the inflationary gap between Services and Goods decreased by 0.1 percentage points with respect to July 2014.

Prices of Grocery and unprocessed food held steady on monthly basis and declined by 0.2% on annual basis (from -0.6% observed in July 2014).

In August 2014, the Italian harmonized index of consumer prices (HICP) decreased by 0.2% compared both with the previous month and with August 2013 (in July 2014, the annual rate of change was equal to zero). Also in this case, final data confirm the preliminary ones.

Core inflation measured by Italian HICP was 0.4% (down from 0.5% in July 2014); the same trend was registered for the inflation calculated excluding energy, food, alcohol and tobacco. Excluding energy, the inflation was 0.2% (0.1 lower than in July 2014).

In August 2014, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) declined by 0.2% compared with July 2014 and by 0.6% with respect to August 2013. The difference between the HICP and HICP-CT growth rates was equal to 0.4 percentage points (0.1 higher than in July 2014). This difference incorporates the effects of changes in indirect taxes, which occurred in the last twelve months and, in particular, the impact of the rise of fuels excises that took place from the 1^st of March (Law n. 98 of the 9^th August 2013) and of the increase of the standard VAT rate from 21% to 22%, in force from the 1^st October 2013 (Law n. 99 of the 9^th August 2013). It should be noted that it 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.