Inflation above Eurozone average for 8th consecutive month

Italy's consumer price index in May stood at 7.6% year-on-year, while the annual inflation rate in the 20-country eurozone was 6.1%.

Italy: Lam phat cao hon muc trung binh cua Eurozone 8 thang lien tiep hinh anh 1 People buy goods at a supermarket in Milan, Italy. (Photo: AFP/TTXVN)

Italy's inflation rate in May 2023 remained higher than the Eurozone average for the eighth consecutive month.

According to data released by the Italian National Statistics Agency (ISTAT) on June 16, Italy's consumer price index in May stood at 7.6% compared to the same period last year, while the annual inflation rate in the 20 countries of the eurozone was 6.1%.

The last time inflation in the eurozone was higher than in Italy was in September 2022, when it was 9.9% and 8.9%, respectively. The Bank of Italy forecasts 6.1% inflation in 2023, while the European Central Bank (ECB) forecasts 5.4% inflation in the eurozone.

Economists have noted that Italy is particularly vulnerable to inflationary pressures due to its dependence on international trade and inadequate domestic energy production to meet demand.

Inflation in Europe rose sharply last year due to the economic impact of the conflict between Russia and Ukraine, including Russia’s frequent cuts in gas supplies to Europe. Before the conflict began, Italy was Russia’s second-largest natural gas customer in Europe, after Germany.

While global energy prices have started to fall from record highs late last year, Italian state-owned energy giant Eni said that retail energy prices in Italy are rising again, according to a survey of petrol and diesel fuel dealers.

This trend has had a negative impact on Italian trade, thus contributing to price increases.

ISTAT also said that in April, Italy's exports fell 1.7% year-on-year, while imports rose 5.3% year-on-year, reflecting higher prices for raw materials, intermediate goods and finished goods.

The decline in exports was similar for both European trading partners (down 1.5%) and partners outside the European Union (down 2.0%).

ISTAT said that in the four-month period ending April 2023, both exports and imports fell, by 2.2% and 6.5% respectively.

Despite these trends, forecasts for Italy and the European Union (EU) indicate that the pace of inflation in Italy is likely to fall below that of the Eurozone starting next year.

The Bank of Italy predicts that inflation will rise to 2.3% in 2024 from 2023 levels and continue to decline to 2.0% annually in 2025. Over the same period, the ECB predicts Eurozone inflation of 3.0% in 2024 and 2.2% in 2025./.

Duong Hoa (VietnamPlus)

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