In March 2024, Italy experienced a stable economic environment, as indicated by the unchanged rate of the Italian consumer price index for the whole nation (NIC) compared to the previous month, and a modest annual increase of 1.2 per cent, according to data released by the Italian National Institute of Statistics (Istat). This figure closely aligns with the flash estimate of 1.3 per cent.

The clothing and footwear sector reported a 0.2 per cent increase month-over-month (MoM) and a 1.7 per cent increase year-over-year (YoY).

The stability on a MoM basis was influenced by both increases and decreases in specific sectors. Notably, regulated energy products saw a slight increase of 0.7 per cent, and non-durable goods rose by 0.4 per cent. However, these gains were offset by a 1.9 per cent decrease in non-regulated energy products.

On an annual basis, the all-item index witnessed a significant shift, largely driven by the narrowing of the price contraction in energy products. Prices for non-regulated energy products improved considerably, moving from a 17.2 per cent decline to a 10.3 per cent decline. Similarly, regulated energy products showed a less steep decrease, improving from minus 18.4 per cent to minus 13.8 per cent, as per Istat.

Core inflation, which excludes volatile items such as energy and unprocessed food, remained constant at 2.3 per cent. When excluding only energy, inflation slightly decreased from 2.6 per cent to 2.4 per cent. The overall goods sector, however, recorded a YoY decline of 0.2 per cent, an improvement from minus 0.9 per cent in February.

March also marked a notable increase in the Italian harmonised index of consumer prices (HICP), which rose by 1.2 per cent on a monthly basis, predominantly due to the conclusion of winter sales in the clothing and footwear sectors. The annual change in the HICP also stood at 1.2 per cent, a rise from 0.8 per cent in February. This measure too matched its initial flash estimate of 1.3 per cent.

Moreover, the impact of inflation as measured by the HICP over the first quarter of 2024 varied significantly across different socio-economic groups. The sub-population with the lowest level of equivalent expenditure faced a decrease of 0.4 per cent, whereas households with the highest levels of expenditure saw inflation rates increase by 1.7 per cent.

Fibre2Fashion News Desk (DP)

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