ITALY DATA
Italian February flash HICP inflation was a touch below consensus at 0.9% Y/Y (vs 1.0% cons, 0.9% prior) and 0.1% M/M NSA (vs 0.2% cons, -1.1% prior). This comes in contrast to the wider Eurozone print, which printed slightly firmer than expectations coming into this month's inflation round.
- Core HICP (ex-energy, food, alcohol and tobacco) moderated to 2.6% Y/Y (vs 2.8% prior), following decelerations in both services (3.1% Y/Y vs 3.2% prior) and non-energy industrial goods (1.3% Y/Y vs 1.8% prior).
- The fall in the services rate appears to have been aided by the communication and health components, with other services categories (restaurants and hotels, recreation and culture, and transport) seeing unchanged or increasing annual rates in February.
- Of the non-core components, energy continued to drag on the headline rate, falling -17.4% Y/Y (vs -20.7% prior), while unprocessed foods saw a welcomed deceleration to 4.7% Y/Y (vs 8.5% prior).
- CPI inflation was 0.8% Y/Y (vs 1.0% cons, 0.8% prior) and 0.1% M/M NSA (vs 0.3% cons and prior).
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