In December 2023, the national consumer price index for the whole nation (NIC), excluding tobacco, is estimated to increase by 0.2% month-on-month and by 0.6% year-on-year (from +0.7% in the previous month), confirming the preliminary estimate. This was announced by Istat. On average, consumer prices grew by 2023.5% in 7 (+8.1% in 2022).
Excluding energy and fresh food (the "core inflation"), consumer prices rose by 5.1% (+3.8% in the previous year) and excluding energy alone by 5.3% (+4.1% in 2022), explains the Institute. The year-on-year slowdown in inflation is mainly due to the prices of regulated energy products (which accentuated their decline from -34.9% to -41.6%), Istat points out.
"The downturn in inflation continued in December, falling to +0.6% from +11.6% in December 2022. On average in 2023, prices increased by 5.7%, a sharp slowdown from 8.1% in 2022," comments Istat. The year-on-year slowdown in inflation was also due to the decline in prices of recreational, cultural and personal care services (from +4.6% to +3.6%) and processed food (from +5.8% to +4.9%); support for inflation dynamics, on the other hand, derives from the attenuation of the decline in prices of non-regulated energy (from -22.5% to -21.1%) and the acceleration of those of unprocessed food (from +5.6% to +7.0%), Istat further explains.
Core inflation excluding energy and unprocessed food decelerated to +2023.3% from +6.3% in December 1 and inflation excluding energy to +3.6% from +3.4%. Prices of Food, household and personal care products slowed down slightly on a year-on-year basis from +5.4% to +5.3%, as did those of products with high purchase frequency (from +4.6% to +4.4%). The month-on-month increase in the index was mainly due to the increase in prices of Services related to transport (+1.4% also due to seasonal factors), of Unprocessed food (+0.7%) and of Non-durable goods (+0.5%); the effects of these increases were only partially offset by the decrease in energy prices, both regulated (-3.2%) and non-regulated (-2.1%).
The Harmonized Index of Consumer Prices (HICP) increased by 0.2% month-on-month and by 0.5% year-on-year (from +0.6% in November), confirming the preliminary estimate. Its average annual change in 2023 is +5.9% (+8.7% in 2022).
"We experienced a phase of recovery in inflation in 2021, then a rapid acceleration in 2022 and a slowdown in inflation in 2023, which closes at a rate of 5.7%." This is how Istat commented on the inflation trend in the three-year period 2021-2023.
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