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Inflation at lowest since 2009, but 'trolley' twice as high

Index of most frequently bought goods at 1% in February

13 March, 11:30
Inflation at lowest since 2009, but 'trolley' twice as high (ANSA) - Rome, March 13 - Italy's annual inflation rate dropped to its lowest level since October 2009 last month when it fell to 0.5%, national statistics agency Istat said Thursday, confirming its preliminary estimate.

The annual inflation rate fell from 0.7% in January.

Istat added that prices actually fell 0.1% last month with respect to January.

However, the agency said the increase in the 'trolley' of most frequently bought goods, such as food and fuel, was twice as much as the annual inflation rate, at 1%.

Istat revised up its preliminary estimate for the trolley for February from 0.9%. The economic crisis has dampened price rises.

A two-year run of negative growth ended in the third quarter of last year, when GDP was flat with respect to the April-June period, and was followed by a 0.1% rise in the fourth quarter, but recovery is weak.

Indeed, Istat said Venice is witnessing deflation.

The lagoon city's annual inflation rate was -0.5% in February.