Italy Consumer Price Index (CPI) m/m

The Consumer Price Index (CPI) m/m reflects the change in the prices of a consumer basket of goods and services intended for the final household consumption, in Italy, in the given month compared to the previous month. It is a fundamental index for evaluating changes in purchasing trends, which is used as a measure of headline inflation.

Data for the index calculation is collected from local and central surveys, as well as from administrative sources (Ministry of Economic Developments). Furthermore, indices are calculated at different levels: provincial and regional, as well as all-item index, which is obtained as a weighted average of regional indices.

The consumer basket includes food products, non-alcoholic and alcoholic beverages, tobacco, closing, furniture, electricity and water, transportation services, entertainment, education and other goods and services. Different weights are given to the goods and services, reflecting related expenditure shares on final consumption expenditure.

In relation to the Euro (EUR) currency, a higher indication of data can be interpreted as a positive signal and an upward forecast, given that to combat inflation the most widely used tool is to increase rates, leading to attracting foreign investment; lower data can be interpreted as a negative signal and may suggest a downward currency forecast.