Italy Disinflation On Energy and Goods, Austria On Energy (2/2)

Italy (17% of Eurozone HICP)

• HICP 1.9% Y/Y (vs 5.6% prior); 0.2% M/M
• CPI 1.8% Y/Y (vs 5.3% prior); -0.1% M/M
• Italian annual flash October inflation came in well below expected (Y/Y HICP by 0.3pp and CPI by 0.4pp), with CPI unexpectedly deflating M/M (-0.1% vs +0.2% expected). Core (ex-energy/unprocessed food) was 4.2% Y/Y (vs 4.6% prior)
• Energy base effects played a large role in bringing down the annual headline CPI (as expected) though unprocessed and processed food prices also showed disinflation. The monthly print was negative in spite of a 12.0% M/M increase in regulated energy products (due to an increase in the regulated gas price by ARERA).
• Upside contributions to the annual rate came from services related to housing and transport - services were flat vs September at 4.1% Y/Y while goods fell markedly to 0.1% Y/Y (vs 6.0% prior).

Austria (3.4% of Eurozone HICP)

• HICP 4.9% Y/Y (vs 5.7% prior); 0.4% M/M
• CPI 5.4% Y/Y (vs 6.0% prior); 0.3% M/M
• Austrian CPI came in at the slowest rate since Jan 2022, with Statistics Austria citing "prices for food and furniture, which rose significantly a year ago and are now driving inflation less strongly. In addition, fuel is significantly cheaper compared to October of the previous year".