Italy remains in deflation in September

(ANSA) - Rome, September 30 - 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.