Italy Jun Prelim CPI Hits New Record; +3.8% On Yr
By Sofia Celeste and Liam Moloney
Of DOW JONES NEWSWIRES
ROME (Dow Jones)--Italian consumer price inflation continued to accelerate, rising to its highest level since July 1996, as energy and food prices continued to surge, preliminary data from statistics office Istat showed Monday.
Consumer prices rose 3.8% on the year in June after increasing 3.6% in May. On the month, consumer prices rose 0.4% after a 0.5% rise in May.
Economists had expected a 0.3% rise on the month and a 3.7% rise on the year in June, according to a Dow Jones survey.
Amid growing concern about the rising cost of food and beverages, prices in that sector continued to climb, rising 6.1% on the year in June. The price of pasta surged 22.4%, while the price of bread rose 13% and the price of milk rose 11.1%.
The water, electricity and fuel sector and the transport sector led gains, growing 7.2% and 6.9% on the year, respectively. Both sectors are affected by energy prices.
Energy goods prices, which account for 8% of the entire index, rose 14.8% on the year, as international oil prices hit record highs in June. Transport diesel rocketed 31.2%, while unleaded gasoline rose 12.6%.
Excluding energy prices, annual inflation was 2.9%, up from 2.7% in May, Istat said.
Core inflation, which strips out both food and energy prices, was an annual 2.7%, up from 2.6% in May.
Italy's European Union-harmonized index of consumer prices, which takes into account seasonal variations, such as discount sales, rose 4.0% on the year in June, the highest level since records began in 1997.
Euro-zone inflation in June hit a record high rate of 4.0%, Eurostat data also showed Monday.
Inflation is expected to remain high in the next few months, some economists say, posing a serious challenge for the Italian economy.
Istat Web site: www.istat.it |
