Key insights
- Italian HICP inflation surged to 2.9% y/y in April, exceeding forecasts due to rising energy costs linked to Middle East tensions. While core inflation slowed slightly, the higher-than-expected headline figure could influence ECB policy and indirectly impact US markets through global economic sentiment and potential shifts in monetary policy.
ROME, April 30 (Reuters) - Italian EU-harmonised consumer prices (HICP) rose by 1.7% in April from the month before, with the annual inflation rate surging to 2.9% from 1.6% in March amid increasing energy costs due to turmoil in the Middle East, preliminary data showed on Thursday.
The reading was far above a median forecast in a Reuters survey of 16 analysts which pointed to an increase of 1.3% month-on-month and a year-on-year rise of 2.5%.
April’s year-on-year rate was the highest since October 2023, official statistics agency ISTAT said.
ISTAT also reported that the main domestic price index (NIC) was up 1.2% month-on-month in April and up 2.8% annually, following a 1.7% annual increase in March.
Core inflation (net of fresh food and energy) was running at 1.6% year-on-year on the HICP index in April, slowing from 1.8% in March.