Consumer prices

In February 2018, the rate of change of Italian consumer price index for the whole nation (NIC) was null compared with the previous month and +0.5% compared with February 2017 (it was +0.9% in January 2018). The flash estimate was +0.6%.

In February, the slowdown of the growth on annual basis of All items index was mainly due to the trend reversal of prices of Unprocessed food (-3.2% from +0.4% in the previous month); other and strengthened by the deceleration of prices of both Processed food including alcohol (+1.3% down from +2.1% in January) and of Regulated energy products (+5.3% down from +6.4%).

As a consequence, Excluding energy and unprocessed food, core inflation was +0.6% (as in January) and inflation excluding energy was +0.2% (down from +0.6% in the previous month).

The zero variation on monthly basis of All items index was due to opposite and symmetric dynamics of Goods (-0.4%) and Services (+0.4%) due, in particular, on one side to the prices of Food including alcohol (both of them -0.7%) and on the other side to those of Services related to transport (+1.6%).

The annual rate of change of prices of Goods was +0.3% (down from +1.3% in January) and that one of prices of Services was +0.8% (up from +0.6% in the previous month). As a consequence, the inflationary gap between Services and Goods was positive after five months and equal to +0.5 percentage points (it was -0.7 percentage points in January).

Prices of Grocery and unprocessed food decreased by 0.7% on monthly basis and by 0.6% on annual basis (from +1.2% in the previous month).

In February 2018 the Italian harmonised index of consumer prices (HICP) decreased by 0.5% compared with the previous month (for the further reductions of prices for the winter sales of Clothing and footwear) and increased by 0.5% with respect to February 2017 (it was +1.2% in January). The flash estimate was +0.7%.

In February both core inflation, measured by Italian HICP (+0.6%) and inflation excluding energy, food, alcohol and tobacco (+0.5%) decelerated by 0.2 percentage points compared with the previous month while inflation excluding energy was +0.3% (0.5 percentage points lower than in January).

In February 2018, the Italian harmonized index of consumer prices at constant tax (HICP-CT) decreased by 0.4% compared with the previous month and increased by 0.6% with respect to February 2017. Therefore, 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 negative and equal to 0.1 percentage points.