Consumer prices

In June 2020 the rate of change of Italian consumer price index for the whole nation (NIC) was +0.1% on monthly basis and -0,2% with respect to June 2019 (the same as in may), confirming the flash estimate.

The second consecutive month of decrease on annual basis of All items index was mainly due to the confirmation of the wide decreases of prices of both Regulated (-14.1%) and Non-regulated energy products (-11.2%). On the contrary, prices of Food including alcohol still grew clearly, speeding up Unprocessed food (from +3.7% to 4.1%) and slightly slowing down Processed food including alcohol (from 1.7% to 1.2%). Also Tobacco (+3.0%) and Services – miscellaneous (+1.4%) increased of prices by over one percentage point.

Core inflation (excluding energy and unprocessed food) was +0.7% (down from +0.8% in the previous month) and inflation excluding energy was +0.9% (from +1.0% in the previous month).

The increase on monthly basis was mainly due to the increase of prices of Services related to transport (+2.2%) mainly due to the usual seasonal factors.

Prices of Grocery and unprocessed food decreased by 0.6% on monthly basis and increased by 2.1% on annual basis (down from +2.4% in the previous month).

In June 2020 the rate of change of the Italian harmonized index of consumer prices (HICP) was zero with respect to the previous month and equal to -0.4% on annual basis (down from -0.3% in the previous month), confirming the flash estimate.

In the second quarter of 2020, the rate of change of HICP was -0.5% for the households with less purchasing power and was zero for those with greater spending power, confirming, in a context of general slowdown of inflation, the difference between the two groups that was registered in the last quarter of 2019.

In June the estimates of NIC and HICP have been carried out in the context of the gradual reduction of the seriousness of the Covid-19 crisis and the gradual reopening of most of retail trade activities supplying goods and services. Even if still high, the amount of missing observations decreased. On pages 14-15 the methodological note describes the choices adopted to deal with the ongoing issues and the new context.