Italy in deflation in 2016: was not the case for the past 57 years – The Sun 24 Hours

The rebound of the end of the year is not enough to exit from deflation. And it happened to be 57 years.
In the month of December 2016, according to the preliminary estimates by Istat, the national index of consumer prices recorded an increase of 0.4% compared to the previous month and up 0.5% against December 2015. However, in the average year, consumer prices-2016, registering a negative variation of 0.1%, below the +0.1% of 2015.

it Was in 1959, when the decline was 0.4%, which was not the case. A fact that says a lot about the weakness of consumer demand in spite of the upward revision made by Istat at the beginning of December.

The"core inflation, calculated net of fresh food and energy products, however, remains in positive territory (+0,5%), though slowing growth from +0.7% in 2015.

Leap Christmas
The resurgence of inflation in December 2016 is mainly due to the acceleration of the growth of prices of services related to transport (+2,6% +0,9% in November), the energy non-regulated (+2,4% +0,3% in November), food and non-processed (+1.8%, the was +0.2% the previous month).
In December, the"core" salt +0.6% (from +0.4% the previous month); the net of just energy goods stood at +0.7% (+0.4% in November).

After 34 months of changes in inflation is negative, prices are back to record a positive variation (+0,1% from 0.4% as of November),
while the rate of growth of prices of services accelerates, reaching +0.9% (was +0.5% in November).
In the shopping cart the prices of food goods and of those for the care of the house and of the person grow 0.4% in terms of cyclical and 0.6% y / y (down by 0.1% in November).

The rise in prices gives a breath of fresh air to companies and distributors, but will continue? There will probably be an evolving moderate, but oil prices remain on the rise, and if interest rates reverse course.

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