Consumer prices

In December 2014, the Italian consumer price index for the whole nation (NIC) held steady on both monthly and annual basis (the annual rate of change observed in November 2014 was +0.2%). Final data confirm the provisional ones.

The dynamics on annual basis of the All items index was mainly due to the widening of the annual decrease of prices of Non-regulated energy products (-8.0%, from -3.1% in November 2014) which was determined by the further marked decline of prices of fuels.

Excluding unprocessed food and energy, core inflation was 0.6% (0.1 higher than in the previous month); excluding only energy, the inflation was 0.5%, down from 0.6% in November 2014.

The stability with respect to November 2014 of All items index was essentially synthesis of the monthly decline of prices of Non-regulated energy products (-3.6%) and the monthly increases of prices of Services related to transport (+2.6%), on which seasonal factors had an impact.

The annual rate of change of prices of Goods was -0.8% (twice the decline observed in the previous month) and the annual rate of change of prices of Services was +1.0% (up from +0.9% in November 2014). As a consequence, the inflationary gap between Services and Goods increased by 0.5 percentage points with respect to November 2014.

Prices of Grocery and unprocessed food rose by 0.1% on monthly basis and decreased by 0.2% on annual basis (down from +0.4% in November 2014).

The average annual inflation rate for 2014, measured by NIC, was 0.2%, with a marked slowdown from 1.2% registered for 2013.

In December 2014, the Italian harmonized index of consumer prices (HICP) held steady with respect to the previous month and declined by 0.1% with respect to December 2013 (from +0.3% in November 2014). Also in this case, the flash estimate was confirmed.

Core inflation measured by Italian HICP was 0.6%, up from 0.5% in November 2014. An increase of one tenth of a percentage point was also registered for the inflation calculated excluding energy, food, alcohol and tobacco (which was 0.7%, up from 0.6% in November 2014). Excluding energy, the inflation fell to 0.5% (from 0.6% in the previous month).

The average annual inflation rate for 2014, measured by Italian HICP, was equal to 0.2%, more than one percentage point less than in 2013 (+1.3%).

In December 2014, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) held steady compared with November 2014 and declined by 0.1% with respect to December 2013 (as the HICP). Therefore, as in the previous two months, 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 zero. It should be noted that the difference between HICP and HICP-CT growth rates 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. The annual average rate of change of the Italian HICP-CT for 2014 was -0.1%.