Italian inflation inches up in May on rising energy pressures
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EUROPE: Energy proved the main driver of the continued rise in Italian headline inflation in May. Core inflation also edged up marginally. We expect some contained pass-through over the next few months, with average yearly inflation around the 3% mark
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4 itemsItalian inflation inches up in May on rising energy pressures
Italian inflation inches up in May on rising energy pressures
Energy shock sends Italian inflation sharply higher
Per the full note from [source], Italy's headline inflation jumped above 4% in September, but the desk argues the underlying picture is far softer and remains an energy story. Istat's preliminary estimate put national CPI at 4.2% year-on-year, up from 3.3% in August, while harmonised inflation rose to 4.1% from 3.2%. The acceleration was overwhelmingly driven by energy, with regulated energy inflation reaching 25.9% and non-regulated energy at 22.2%, both sharp moves on the month. Food also strengthened, but entirely due to unprocessed food at 5.5%, while services inflation edged up only modestly to 2.6% and core excluding energy and fresh food rose just to 1.7% from 1.5%. The desk's read is that second-round effects are not yet visible in services, so the composition is less alarming than the headline suggests. With no internal coverage on the euro area or upcoming high-impact events, this piece stands as a standalone macro signal for the euro's inflation narrative.