Italian inflation shows signs of slowing in March 2023: Istat

The deceleration of the prices of non-regulated energy goods was a major contributing factor to the slowdown in inflation, dropping from 40.8 per cent to 18.9 per cent. Meanwhile, the prices of regulated energy goods experienced an even greater decline, dropping from minus 16.4 per cent to minus 20.3 per cent.

Core inflation, which excludes energy and unprocessed food, remained stable at 6.3 per cent in March 2023. Similarly, the annual rate of change for all-items excluding energy was 6.4 per cent, unchanged from the previous month, as per Istat.

The prices of goods experienced an annual rate of change of 9.7 per cent, down from February's 12.4 per cent. On a monthly basis, the decrease in NIC was due to non-regulated energy products (minus 9.6 per cent) and regulated energy products (minus 4.6 per cent). However, semi-durable goods (0.5 per cent) and non-durable goods had an upward effect.

The Italian harmonised index of consumer prices (HICP) increased by 0.8 per cent on a monthly basis in March, primarily due to the end of winter sales for clothing and footwear (not considered by NIC). As a result, the annual rate of change for the Italian HICP was 8.1 per cent, down from February's 9.8 per cent. The flash estimate for March was 8.2 per cent.

In the first quarter of 2023, HICP inflation had a wider impact on the sub-population with the lowest level of equivalent expenditure than on households with the highest amount of expenditure, with increases of 12.5 per cent and 8.2 per cent, respectively.

ALCHEMPro News Desk (DP)