Italy: Harmonized inflation recedes in April
Latest reading: Harmonized inflation inched down to 2.0% in April from March’s 2.1%. Looking at the details of the release, housing and utilities price pressure waned, and transportation costs continued to decline amid lower fuel prices. That said, prices for food and non-alcoholic beverages increased at a quicker pace.
The trend pointed up slightly, with annual average harmonized inflation rising to 1.4% in April (March: 1.3%). Meanwhile, consumer price inflation was unchanged, coming in at March’s 1.9% in April.
Finally, harmonized consumer prices increased 0.40% from the previous month in April, moderating from the 1.55% increase recorded in March.
Panelist insight: Commenting on the outlook, Sofia Tozy, analyst at Credit Agricole, stated:
“Forecasts for energy goods prices remain, for now, tilted to the downside, largely influenced by a slowdown in global trade — a direct consequence of the trade war led by the Trump administration. As such, the remainder of the year is expected to follow a more disinflationary trend, albeit less pronounced than in 2023. Inflation forecasts for Italy have therefore been revised downward compared to the previous outlook.”