Consumer prices

In November 2017, the Italian consumer price index for the whole nation (NIC) decreased by 0.2% on monthly basis and increased by 0.9% compared with November 2016 (it was +1.0% in October 2017). The flash estimate was confirmed.

In November, the further slight slowdown of the growth on annual basis of All items index was mainly due to the deceleration of prices of Unprocessed food (+3.2% down from +3.8% in October) and Services related to recreation, including repair and personal care (+0.9% down from +1.4%), partially offset by the acceleration of prices of Non-regulated energy products (+5.0%, up from +4.3% in the previous month).

As a consequence, Excluding energy and unprocessed food, core inflation was +0.4% (0.1 percentage points lower than in October) and inflation excluding energy was +0.6% (+0.7% in the previous month).

The decrease on monthly basis of All items index was mainly due to the prices of Services related to
recreation, including repair and personal care (-1.4%) and Services related to transport (-1.0%). Both of them were affected by seasonal factors. These dynamics were slightly offset by the increase on monthly basis in prices of Non-regulated energy products (+1.3%) because of fuels and diesel.

The annual rate of change of prices of Goods was +1.3% (up from +1.2% in October) and that one of prices of Services was +0.5% (down from +0.7%). As a consequence, the inflationary gap between Services and Goods was still negative and equal to -0.8 percentage points (it was -0.5 in October 2017).

Prices of Grocery and unprocessed food increased by 0.3% on monthly basis and by 1.6% on annual basis (down from +1.7% in the previous month).

In November 2017, the rate of change of Italian harmonized index of consumer prices (HICP) decreased by 0.2% compared with the previous month and increased by +1.1% with respect to November 2016 (as in the previous month). The flash estimate was confirmed.

nCore inflation, measured by Italian HICP, was +0.5% (as in October) while both inflation excluding energy, food, alcohol and tobacco (+0.4%) and inflation excluding Energy (+0.7%) decelerated by 0.1 percentage points with respect to October.

In November 2017, the rate of change Italian harmonized index of consumer prices at constant tax rates (HICP-CT) decreased by 0.2% compared with the previous month and increased by 1.0% with respect to November 2016 (as 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.