Italy in deflation, Aug price drop 0.1%

(ANSA) - Rome, August 29 - Deflation hit Italy as consumer prices fell 0.1% in August, Istat said in preliminary estimates Friday. The price index had risen 0.1% in July. Fuel prices, 1.2% lower than the same month in 2013, led the downward price spiral, Istat said.
    It is the first deflation in more than 50 years, since September 1959, Istat said. But back then, unlike now, the economy was growing strongly, it said. The consumer price index fell 1.1% in September 1959 after seven straight months of drops. The 'shopping trolley' of most commonly bought goods went into deflation in August too, Istat said. The prices of food, household goods and personal care goods fell by 0.2% over the year, it said in its preliminary estimates.