Deflation in recession-hit
Italy worsened in September, when the annual inflation rate was
-0.2%, Istat said Tuesday.
The rate was lower than the -0.1% the national statistics
agency had forecast in its preliminary estimate. Prices fell
0.4% in September with respect to August, Istat added.
Deflation hit the Italian economy for the first time since
September 1959 in August, when the annual inflation rate was
-0.1%.
Italy has slipped into its third recession since the start
of the global economic crisis in 2008 and many experts say there
is a danger deflation could gain a strong hold over the economy
and make recovery more 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.
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