# Italy CPI rises again in April amid energy prices volatility
Published: 2023-05-02
Category: Headlines
Category URL: https://companiesdigest.com/category/headlines/
Meta Title: Italian Inflation Surges in April: Energy Prices Drive Unexp
Meta Description: Discover the latest data on Italian inflation, driven by energy prices spike. Stay updated with official statistics and expert analysis. Read more now!
URL: https://companiesdigest.com/italy-cpi-rises-again-in-april-amid-energy-prices-volatility/

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By Antonella Cinelli

ROME (Reuters) – Italian inflation jumped unexpectedly in April, driven by another spike in energy prices, official statistics agency ISTAT said on Tuesday.

EU-harmonised consumer prices (HICP) rose a preliminary 1.0% month-on-month, with annual inflation accelerating to 8.8% from 8.1% in March, well above the median forecast of a 7.8% year-on-year rise.

Italy’s inflation dynamic continues to be affected by an ongoing adjustment in [energy prices](https://companiesdigest.com/putin-sanctions-risk-causing-energy-price-catastrophe-for-west/), its most volatile component, wrote Loredana Maria Federico, chief Italian economist at UniCredit.

ISTAT underlined that the annual rise was mainly due to non-regulated energy products such as fuel for domestic use, [electricity in the liberalised market and vehicle fuels](https://companiesdigest.com/stellantis-wont-race-to-split-electric-vehicles-from-fossil-fuel-cars/). In the main domestic [price index these elements jumped](https://companiesdigest.com/global-growth-headed-down-as-inflation-surge-to-endure/) 26.7% in April from a 18.9% increase the month before.

On the contrary, [regulated energy](https://companiesdigest.com/mcdonalds-targets-net-zero-emissions-by-2050-from-meat-to-energy/) products showed a wider decline than in March (-26.4% from -20.3%).

CORE INFLATION IN FOCUS

“Given how low [gas prices are on the wholesale market,](https://companiesdigest.com/analysis-new-shock-for-european-markets-as-gas-price-spike-fuels-inflation-fears/) we expect this to be only a temporary pause in the downward adjustment in inflation,” said UniCredit’s Federico, adding that “the dynamics of both food-price and core inflation moved broadly in line with expectations”.

Italian core inflation ( [net of fresh food and energy)](https://companiesdigest.com/mcdonalds-targets-net-zero-emissions-by-2050-from-meat-to-energy/) was stable at 6.8% year-on-year on the HICP index in April.

In the euro zone, overall price growth picked up to 7.0% [last month](https://companiesdigest.com/monkeypox-emergency-could-last-months-with-window-closing-to-stop-spread-experts-say/) from 6.9% in March, but the underlying inflation growth unexpectedly eased to 7.3% from 7.5%, based on Eurostat data.

A surprise [growth in core inflation](https://companiesdigest.com/global-growth-headed-down-as-inflation-surge-to-endure/) has been in focus in recent months, suggesting that the ECB could have more work to do to contain mounting price pressures.

In Italy the path towards a further slowdown in inflation remains solid, with [producer prices](https://companiesdigest.com/putin-sanctions-risk-causing-energy-price-catastrophe-for-west/) also progressively showing a slowing signal, ING senior economist Paolo Pizzoli wrote.

“But the data show that the process is likely to be slow and should only accelerate in the [second half](https://companiesdigest.com/hsbc-eyes-resuming-buybacks-in-second-half-of-2023/) of the year,” he added.

(Reporting by Antonella Cinelli, Valentina Consiglio, editing by Keith Weir)


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