Italy's 'deflation' rate drops to -0.3%

(ANSA) - Rome, May 31 - Italian deflation dropped this month, with an annual inflation rate of -0.3%, compared to -0.5% in April, thanks to a 0.3% rise in the month-on-month consumer price index, according to provisional data released by Istat on Tuesday. The national statistics agency said the continuation of deflation was linked to the drop in energy prices, down 0.8% on May 2015. If energy were excluded from the calculations, Italy would have an annual inflation rate of 0.5%. Istat said the month-on-month rise was down to increases in tobacco and unprocessed food prices.