Italian into deflation in February, is complicated debt down – Reuters Italy

Elvira Pollina and Antonella Cinelli

MILAN / ROME (Reuters) – Italy is no exception to the rest of the euro area and slips into deflation in February, further complicating the lowering of public debt path that should start this year, aim of which already bears a potential for growth that is proving to be less bright of what is put into account by the government.

According to provisional figures released by Istat, on an annual basis the ‘ national consumer price index contracted by 0.3% yoY from + 0.3% in January, compared to expectations for no change. The inflation for 2016 is 0.6%.

also negative in the harmonized index to European parameters, which drops to -0.2% to + 0.4%, to the front, even in this case, a variation of waits for nothing.

As noted by the President of the European central Bank Mario Draghi, following the sharp decline in crude oil prices and the deterioration global growth prospects, even in the euro zone consumer price index slipped into negative territory.

For February Eurostat has certified a decline of 0.2% after + 0.3% in January, reinforcing expectations for the launch of new Muzzles from Frankfurt to avert a deflationary drift.

Returning to the Italian data, Istat stresses that the strong downward trend in consumer prices is the result of a monthly trend characterized by widespread declines in all types of products.

The scenario in which the government has to deal is therefore less reassuring than expected since the last update of the macroeconomic framework included in the law of Stability.

There is assumed a GDP growth of 1.6% in terms real and of 2.6% in nominal terms, ie it is considering inflation, which would lead to a reduction of the debt to 131.4% from 132.8 in 2015. Continue. ..