Consumer prices

In July 2019 the rate of change of Italian consumer price index for the whole nation (NIC) was stable on monthly basis and increased by 0.4% with respect to July 2018, down from +0.7% in the previous month. The flash estimate was +0.5%.

The slowdown of growth on annual basis of All items index was essentially due to the trend reversal of prices of Regulated energy products (from +4.3% to -5.2%), that was only slightly offset by the speed-up of prices of Unprocessed food (from +0.7% to +1.5%) and of Services related to transport (from +1.5% to +1.8%) and by the reduction in the extent of price decrease of Durable goods (from -1.9% to -1.4%).

The core inflation excluding energy and unprocessed food was +0.5% (up from +0.4% in June 2019) and inflation excluding energy was +0.6% (up from +0.5%).

The zero variation on monthly basis of All items index was due to opposite dynamics: the decrease of prices of Regulated energy products (-3.6%), of Unprocessed food (-0,9%) and of Non-regulated energy products (-0.8% for both) offset by the increase, affected by seasonal factors, of prices of Services related to recreation, including repair and personal care and of Services related to transport (+0.7% for both).

The annual rate of change of prices of Goods was -0.1% (down from +0.5% in the previous month) and that one of prices of Services was +1.0% (the same as in June 2019). As a consequence, the inflationary gap between Services and Goods was +1.1 percentage points (+0.5 in the previous month).

Prices of Grocery and unprocessed food decreased by 0.2 on monthly basis and increased by 0.6% on annual basis (up from +0.2% in the previous month).

In July the Italian harmonized index of consumer prices (HICP) decreased by 1.8% compared with the previous month and increased by 0.3% with respect to July 2018 (down from +0.8% in June). The decrease on monthly basis was mainly due to the beginning of the summer sales of Clothing and footwear (-20.9% compared with June 2019), which are not taken into account in the national index NIC. The flash estimate was +0.4%.