Consumer prices

In July 2017 the Italian consumer price index for the whole nation (NIC) increased by 0.1% on monthly basis and by 1.1% compared with July 2016, down from +1.2% in June 2017. The flash estimate was confirmed.

In July, the lower growth of All items index was mainly due to the slowdown of growth of prices of both Regulated energy products (+5.0%, from +6.2% in June) and Non-regulated energy products (+2.1%, from +2.9%) and of Services related to transport (+3.2%, from +4.1%). At a lower extent it was due to the decrease of prices of Services related to communication (-1.3% from +0.1%).

Excluding energy and unprocessed food, core inflation increased by +0.8% (0.1 percentage points lower than in June), while inflation excluding energy was stable (+0.9% as in the previous month).

The increase on monthly basis of All items index was especially due to prices of Services related to transport (1.6%) and of Services related to recreation,
including repair and personal care (+0.9%), partially offset by the decrease of prices of Food including alcohol (-0.7%) and Energy (-1.0%).

The annual rate of change of prices of Goods was +0.8% (down from +0.9% in June) and that one of prices of Services was +1.3% (down from +1.5%). As a consequence, the inflationary gap between Services and Goods was still positive (+0.5 percentage points).
Prices of Grocery and unprocessed food decreased by 0.6% on monthly basis and increased by 0.8% on annual basis (from +0.7% in the previous month).

In July 2017, the Italian harmonized index of consumer prices (HICP) decreased by 1.9% compared with the previous month and it increased by 1.2% with respect to July 2016 (as in June). The decrease on monthly basis was mainly due to the beginning of the summer sales of Clothing and footwear
(-21.7% compared with June 2017), which are not taken into account in the national index NIC. The flash estimate was confirmed.

In July core inflation,
measured by Italian HICP, was +0.8% (down from 1.0% in June); both inflation excluding energy, food, alcohol and tobacco and inflation excluding Energy was +0.9% (down from +1.0%).

In July 2017, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) decreased by 2.0% compared with the previous month and increased by 1.1% with respect to July 2016 (0.1 percentage points lower than 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 positive and equal to 0.1 percentage points.