Curb prices, negative in October: 9 cities in deflation

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Step backinflation in negative territory. And substantially stagnant on an annual basis. With 9 large cities in the center-north, technically in deflation. THE'Istat revises downward inflation in October, bringing it to 0.2% from 0.3% of preliminary estimates.
The same institute makes it known, explaining that it is the lowest level since November 2016, therefore for almost three years. The figure is also in a "slight" slowdown compared to September (when it was at 0.3%). The index for the year is substantially stable at + 0.2%.

The reasons
The slight deceleration of inflation is mainly due to the widening of the price declines energy goods regulated (from -5.3% to -8%), only partially offset by the acceleration of transport prices (from + 0.4% to + 1.8%). The underlying inflation – net of energy and fresh food and that net only of energy goods – both accelerate from + 0.6% to +0.7 percent.
On the economic front, on the other hand, the decrease is essentially due to the fall, mostly due to seasonal factors, in the prices of services relating to transport (-0.7%) and of the recreational, cultural and for the personal care (-0.8%), only partly offset by the increase in energy assets, both in the regulated component (+ 2.9%) and not (+ 0.9%). The decline in asset prices is accentuated (from -0.2% to -0.5%), while those for services accelerated (from + 0.9% to + 1.1%). The 2019 acquired inflation is +0.6 percent.
The prices of food, care for the home and the person increase by 0.5% per year (from + 0.4% in the previous month) and those of products with a high purchasing frequency of 0.4% (stable ).

The shopping cart and bills
In October, the prices of the so-called "shopping cart" – which includes food, home and personal care – increase by 0.5% on an annual basis, from 0.4% in the previous month.
A price increase above the general rate (0.2%) but compared to the estimate of two weeks ago is significantly reduced
(0.8%).
The rise in bills by light and gas, taken since October 1, as decided by the Arera, does not warm inflation. Indeed, for Istat the deceleration in prices "is mainly due" to the widening of the downturn
of regulated energy prices (from -5.3% to -8.0%),
only partially offset by the dynamics of the services related to
transport (from + 0.4% to + 1.8%).

Nine cities in deflation
Finally, Istat notes that in October they are technically nine
city ​​- between capitals and large municipalities – in deflation, or with
an annual change in prices below the zero threshold. The most significant declines are those recorded for Parma (-0.4%), Ancona (-0.3%) and Aosta (-0.2%); followed by Trento, Ravenna, Perugia, Padua, Cagliari and
Bologna (all with a rate of -0.1%). A list dominated, for the most part, by the cities of the Center-North.

To know more:
● The Istat forecast: stagnation without inflation
● Draghi: the lost challenge of still too low inflation