In September 2020 the CPI -0.6% compared with the previous month and -0.5% year-over-year

According to preliminary estimates, in September 2020 the rate of change of the Italian consumer price index for the whole nation (NIC) was -0.6% on monthly basis and -0,5% on annual basis (the same as in August).

The negative inflation was mainly due to the confirmation of the drop of prices of Regulated energy products (from -13.7% in August to -13.6%), of Non-regulated energy products (from -8.6% to -8.2%) and of Services related to transport (from -2.3% to -1.6%); these dynamics were strengthened by the trend reversal of the price of Services related to recreation, including repair and personal care (from +0.1% to -0.4%). On the contrary, the prices of Unprocessed food sped up (from +2.0% to +2.7%).

Core inflation (excluding energy and unprocessed food) was +0.1% (down from +0.3% in the previous month) and inflation excluding energy was +0.3% (down from +0.4% in the previous month).

The decrease on monthly basis was mainly due to the drop, mostly caused by seasonal factors, of prices of Services related to transport (-5.5%) and of Services related to recreation, including repair and personal care (-0.8%), only partially offset by the increase of prices of Unprocessed food (+0.6%).

Prices of Grocery and unprocessed food decreased by -0.2% on monthly basis and increased by +1.2% on annual basis (up from +0.9% in the previous month).

In September the rate of change of the Italian harmonized index of consumer prices (HICP) was +1.0% with respect to the previous month and -0.9% on annual basis (from -0.5% in August).

The different dynamics between HICP and NIC was due to the summer sales, thereof NIC does not take into account. In fact, on monthly basis, the prices of Clothing and footwear increased by +25.4%, for the end of the season of sales, causing the growth of the HICP – all items. But in some cases the summer sales continued and the increase on monthly basis of the prices of these products was less wide (+25.4%) than that of September 2019 (+32.6%), affecting the annual dynamics of prices of Clothing and footwear (from +3.4% in August to -2.2%), and that of HICP – all items, which recorded a larger decrease compared to NIC.

In September preliminary estimates were carried out in the context of a further reduction of the seriousness of the Covid-19 crisis and the reopening of most of retail trade activities supplying goods and services. On pages 11-13 the methodological note describes the choices adopted to deal with the ongoing issues.