Italy's economy, mired in
recession, recorded its second straight month of deflationary
numbers in September, with the annual consumer price index below
zero, national statistical agency Istat said Tuesday.
The annual inflation rate was -0.1 in September, the same
negative rate as recorded in August when deflation hit the
Italian economy for the first time since September 1959.
Italy has slipped into its third recession since 2008 and
many experts say there is a danger deflation could gain a strong
hold over the economy and make recovery very difficult.
The fall in inflation in September was again led by a drop
in energy prices as was the case in August, Istat said.
After energy prices fell by 1.2% in August, the drop
accelerated in September to a fall of 2.8%.
That also contributed to a reduction in food prices because
of lower transportation costs for fresh items.
The core rate of inflation, which excludes volatile energy
and food prices and is most closely watched by policy makers,
was stable at 0.5% in September.
Italy's European Union-harmonized index of consumer prices
(HICP) rose by 1.8% in September compared with August, but fell
by 0.2% compared with September 2013, Istat said.
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