Consumer prices - June 2023

In June 2023 the rate of change of the Italian consumer price index for the whole nation (NIC) was null compared with the previous month and +6.4% on annual basis (from +7.6% in May), confirming the flash estimate.

The slow down of the annual inflation rate was mainly due to the prices of Non-regulated energy products (from +20.3% to +8.4%) and, to a lesser extent, of Processed food including alcohol (from +13.2% to +11.5%), of Services related to transport (from +5.6% to +4.7%) and to the modest fall in fall in prices of Regulated energy products (from -28.5% to -29.0%). At the opposite, an upward contribution to the inflation rate came from the prices of Unprocessed food (from +8.8% to +9.4%).

The core inflation (All-items excluding energy and unprocessed food) was +5.6% (down from +6.0% in May) and the All-items index excluding energy was +5.8% (from +6.2% in the previous month).

As for Goods, the year on year growth rate was +7.5% (down from +9.3% in May) while for Services the annual rate of change was +4.5% (from +4.6%). As a consequence, the negative inflationary gap between Services and Goods decreases in absolute value (from -4.7 percentage points in May to -3.0).

Prices of Grocery and unprocessed food increased by +0.4% on monthly basis and by 10.5% on annual basis (down from +11.2% in the previous month).

The zero increase on monthly basis was due to the prices of Services related to transport (+1.2%) and of Services related to recreation, including repair and personal care (+1.1%), also due to factors related to seasonality, and of Unprocessed food (+0.8%) and whose growth was offset by the decrease of prices of Non-regulated energy products (-4.5%) and Regulated energy products (-0.6%).

In June 2023 the Italian harmonised index of consumer prices (HICP) increased by 0.1% on monthly basis and by 6.7% on annual basis (from +8.0% in the previous month), confirming the flash estimate.

In the second quarter of 2023, inflation measured by HICP had a wider impact on the sub-population with the lowest level of equivalent expenditure than on households with highest amount of expenditure (+9.4 and +7.1% respectively).