Italy’s final HICP inflation likely to have remained the same as flash
estimate in August. According to a Societe Generale research report, Italian
final HICP inflation is expected to have confirmed the flash reading of 0
percent year-on-year. Major components are expected to have made positive
contributions to the headline reading, except for services.
In spite of registering a monthly fall, energy prices rebounded a bit to -6.4 percent year-on-year from -6.9 percent in July. In the meantime, food prices increased for the fifth straight month due to increased prices of unprocessed food.
Meanwhile, core inflation continued to be stable at 0.5 percent year-on-year as services prices weakened a few ticks in August after rebounding in July. Prices of non-energy industrial goods rebounded to 0.4 percent from 0.2 percent year-on-year due to summer sales of footwear and clothing.