Consumer prices

In August 2017, the Italian consumer price index for the whole nation (NIC) increased by 0.3% on monthly basis and by 1.2% compared with August 2016, up from +1.1% in July 2017. The flash estimate was confirmed.

In August, the slight recovery of inflation was mainly due to prices of Non-regulated energy products (+4.3%, up from +2.1% in July) and of Services related to transport (+4.4% from +3.2% in the previous month).

Excluding energy and unprocessed food, core inflation was +1.0% (0.2 percentage points higher than in July) and inflation excluding energy was +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 (+3.4%), which were affected by seasonal factors.

The annual rate of change of prices of Goods was +1.0% (up from +0.8% in July) and that one of prices of Services was +1.6% (up from +1.3%). As a consequence, the
inflationary gap between Services and Goods was positive and equal to +0.6 percentage points.

Prices of Grocery and unprocessed food increased by 0.1% on monthly basis and by 0.6% on annual basis (from +0.8% in the previous month).

In August 2017, the rate of change of Italian harmonized index of consumer prices (HICP) was +0.1% compared with the previous month and +1.4% with respect to August 2016 (it was +1.2% in the previous month). The flash estimate was confirmed.

In August core inflation, measured by Italian HICP, was +1.1% (up from 0.8% in July) and also inflation excluding energy, food, alcohol and tobacco and inflation excluding Energy accelerated (respectively +1.2% and +1.1%, up from +0.9% in the previous month).

In August 2017, the Italian harmonized index of consumer prices at constant tax rates (HICP-CT) increased by 0.1% compared with the previous month and by 1.3% with respect to August 2016 (0.1 percentage points lower than HICP). Therefore, the difference between
HICP and HICP-CT growth rates^[1] – which incorporates the effects of changes in indirect taxes occurred in the last twelve months – was positive and equal to 0.1 percentage points.

[1] The difference between the rates of change of HICP and HICP-CT 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.