The weakness of inflation continues in the Eurozone and, above all, in Italy where for two months now we can speak of real deflation.
According to estimates released by Eurostat, in September the year-on-year growth of consumer prices in the currency union stood at 0,3% against the 0,4% recorded in August. The figure, the lowest since October 2009, is in line with analysts' expectations and further distances inflation from the objectives set by the ECB, which points to a figure close to, but lower than, 2%.
As for Italy, according to provisional estimates by Istat, the national consumer price index stood at -0,1% in September, the same value recorded in August when the country returned to deflation for the first time since 1959.
In the calculation, the downward trend in the prices of non-regulated energy goods weighs (-2,8%, from -1,2% in August), partially balanced by the reduction in the extent of the decline in the prices of non-processed food ( -0,9%, from -1,8% in the previous month), while the other types of product essentially confirm the trends of August.
Core inflation, excluding unprocessed food and energy, remains stable at 0,5% and drops to 0,3% excluding energy alone. Inflation acquired for 2014 fell to 0,3% from 0,4% in August. Compared to September 2013, the prices of goods decreased by 0,6% (the same value recorded the previous month) and the growth rate of the prices of services remained stable at 0,6%.
The prices of products with high purchase frequency are stable, both on a monthly and on an annual basis. The harmonized index of consumer prices (Ipca), on the other hand, increased by 1,8% on a monthly basis and recorded a decrease of 0,2% on an annual basis. The end of the summer sales weighs heavily on the economic increase.
