Italy Dec EU-harmonised CPI decelerates to 1.4% y/y, 2024 average at 1.1%

ROME (Reuters) - Italian EU-harmonised consumer prices (HICP) rose 0.1% month-on-month in December, with the annual inflation rate slowing to 1.4% from 1.5% in November, preliminary figures showed on Tuesday.

The data was lower than expected. A Reuters survey of seven analysts had pointed to a 0.3% month-on-month rise and a 1.6% year-on-year increase.

Official statistics agency ISTAT also reported that Italy's annual HICP average rate for 2024 came in at 1.1%, down from 5.9% in 2023, mainly due to a sharp decrease in energy prices.

In December the main domestic price index (NIC) was up 0.1% on the month and up 1.3% annually, following a 1.3% annual rate the previous month.

Core inflation (net of fresh food and energy) was running at 1.8% year-on-year on the HICP index in December, down from 2.1% in November.

Euro zone inflation last month accelerated, as expected, to 2.4% from 2.2% in November, Eurostat reported on Tuesday.

ISTAT gave the following preliminary breakdown:

EU-harmonised index (HICP):

Dec Nov Oct

Monthly change 0.1 -0.1 0.3

Year-on-year inflation 1.4 1.5 1.0

Index (base 2015=100) 123.4 123.3 123.4

The NIC index:

Dec Nov Oct

Monthly change 0.1 -0.1 0.0

Year-on-year inflation 1.3 1.3 0.9

Index (base 2015=100) 121.2 121.1 121.2

ISTAT gave the following sector-by-sector breakdown for the HICP in December:

Sector m/m yr/yr

Food -0.3 +2.4

Alcoholic drinks, tobacco -0.5 +2.4

Clothing +0.1 +0.7

Housing, electricity, fuel +0.3 0.0

Domestic goods 0.0 +0.3

Health spending 0.0 +2.3

Transport +0.7 +0.5

Communications 0.0 -5.5

Recreation +0.9 +1.1

Education 0.0 +2.9

Hotels, restaurants -0.6 +2.9

Other goods, services +0.3 +2.8

(Reporting by Antonella Cinelli, editing by Crispian Balmer)