Invezz.com – The Italian consumer price index (CPI) remained unchanged at 0.8% in June compared to the same month of the previous year, according to the preliminary report of the Italian National Statistics Institute (Istat) published on Friday. Monthly, the CPI increased 0.1%.
Factors that contribute to the stabilization of the CPI
The stabilization of inflation in Italy was mainly driven by unprocessed foods, recreation-related services, including repairs and personal care, and durable goods.
These categories helped offset price increases seen in unregulated energy products, regulated energy products, and processed foods.
Despite these pressures, core inflation, which excludes energy and unprocessed foods, remained stable at 2.0%. Similarly, inflation excluding energy rose slightly to 2.0% from 1.9% in the previous period.
Harmonized consumer price index
The Italian harmonised index of consumer prices (HICP) also showed changes. The HICP rose by 0.2% month-on-month and 0.9% year-on-year.
The HICP provides a comparable measure of inflation across European Union member states, indicating that Italy’s inflation trends are in line with broader European patterns.
Economic context and future prospects
Italy’s inflation rate, reflected in both the CPI and HICP, suggests a relatively stable economic environment despite different pressures in different sectors.
A stable core inflation rate indicates that underlying price stability is maintained, even when specific categories such as energy and processed foods experience price increases.
This balanced inflation scenario suggests that Italy may continue to experience moderate price stability in the short term, provided that external factors, such as global energy prices, remain relatively stable.
The data highlights the importance of monitoring both headline and core inflation to gain a comprehensive understanding of economic conditions.
Policymakers and economic analysts will closely monitor these trends to ensure that inflation remains within manageable levels and anticipate any potential changes that could affect the broader economy.
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