According to preliminary estimates, in June 2024 the national consumer price index for the entire community (NIC), excluding tobacco, increases by 0.1% on a monthly basis and 0.8% on an annual basis, as in the previous month.
The stability of inflation underlies opposing trends in various expenditure aggregates: the main slowdowns are in the prices of Unprocessed food products (from +2.2% to +0.4%), Recreational, cultural and personal care services (from +4.3% to +4.0%) and Durable goods (whose decline widens from -0.7% to -1.1%); on the other hand, the decline in the prices of Unregulated energy products (from -13.5% to -10.3%) is further attenuated and those of regulated ones (from +0.7% to +3.6%) and Processed food products (from +1.8% to +2.2%) are accelerating.
In June, “underlying inflation”, net of energy and fresh food, remained stable at +2.0%, while that net of energy goods alone decelerated slightly (from +2.0% to +1 .9%).
The trend dynamics of goods prices, while remaining negative, recorded a slight increase (from -0.9% to -0.6%) while that of services is slightly decelerating (from +2.9% to +2.8%). The inflationary differential between the services sector and that of goods therefore reaches 3.4 percentage points (from +3.8 in May).
The prices of food, household and personal care goods are slowing down on a trend basis (from +1.8% to +1.4%), as are those of high-frequency purchasing products (from +2.5% to % at +2.1%).
The quarterly increase in the overall index mostly reflects the growth in prices of Regulated energy goods (+2.3%), Transport-related services (+0.9%), Recreational, cultural and personal care services (+0.8%) and Processed food (+0.5%). The effects of these increases were only partly offset by the decrease in prices of Unprocessed food (-1.0%), Unregulated energy goods (-0.9%) and Durable goods (-0.4%).
The inflation acquired for 2024 is equal to +0.8% for the general index and +1.9% for the underlying component.
Based on preliminary estimates, the harmonized index of consumer prices (HICP) increases by 0.2% on a monthly basis and by 0.9% on an annual basis (from +0.8% in the previous month).
Istat’s comment
In June, according to preliminary estimates, inflation remained at the same level as the previous two months (+0.8%). The stabilization of the growth rate is mainly due to the easing of tensions on the prices of unprocessed food goods (+0.4% from +2.2% in May), the effects of which compensate for the attenuation of deflationary pressures coming from the sector energy, where prices tend to rise, although remaining at largely negative values (-8.6% from -11.6% in the previous month). The slowdown in the annual growth rate of “shopping cart” prices also continues in June (+1.4% from +1.8%), while underlying inflation remains stable at +2.0 %.
Federdistribuzione: Stable price dynamics, consumption still weak
The data released by Istat relating to consumer prices for the month of June show, compared to the previous month, a stable general inflation index with +0.8% on an annual basiswhile the shopping cart marks a further decline with a +1.4% on a trend basis.
The trend of stabilization of price growth is confirmed also in the month of June. However, the economic scenario is still characterized by the fragility of consumption, to which are added the critical meteorological conditions of these weeks, which are causing drought conditions in the southern and island regions on the one hand, and the delay in the arrival of the summer season in the North on the other, with an impact on some seasonal agri-food production and on sales in some sectors linked to the season such as clothing and gardening. In this context, the commitment of Modern Distribution companies to support the purchasing power of families continues, also thanks to the growth in the offer of Private Label (MDD) products, increasingly appreciated for their quality and convenience. (am)
Source: Istat.it, Federdistribuzione press office
