- Prior +1.5%
- HICP +1.6% vs +1.5% y/y prelim
- Prior +1.5%
The jump in Italy’s headline inflation is not as profound as elsewhere in the region. However, it still reflects the same characteristics with energy price inflation spiking higher. Energy price inflation was down by 6.6% year-on-year in February but now reflect a 2.3% decline only instead.
Besides that, the inflationary momentum is also supported by the acceleration in the prices of unprocessed food (+4.4% from +3.7%).
As for core annual inflation, that is seen slowing in March to 1.9% – down from 2.4% in February. That comes as services inflation sees a marked slowdown to 2.8%, down from 3.6% previously.
It’s only one month’s worth of reading for now and with surging energy prices, expect that to have more of an impact on headline and core prices in the region in the months ahead.
