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Italy July CPI matched forecasts as ECB inflation backdrop holds

Italy’s headline CPI rose 2.8% year on year in July, while HICP increased 2.9% year on year, leaving September rate-hike expectations largely unchanged.

Reported · Written up by our desk · Central Banks

Italy’s preliminary inflation data for July showed headline CPI rising 2.8% year on year, matching market expectations and easing from the prior 3.0% pace, according to Forexlive.

The harmonized inflation measure used for cross-euro-area comparisons, HICP, increased 2.9% year on year, slightly above the 2.8% consensus forecast but down from the prior 3.0% reading, the outlet reported.

Forexlive said the data is unlikely to materially shift expectations for ECB policy, especially after the euro area’s core CPI year on year beat expectations at 2.5% versus 2.4% forecast.

With the latest figures not changing the broader inflation picture, expectations for a rate hike in September remain in play.

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