Italy August preliminary CPI -0.5% vs -0.5% y/y expected

Latest data released by Istat - 31 August 2020

• Prior -0.3%; revised to -0.4%
• CPI +0.3% vs +0.3% m/m expected
• Prior -0.1%; revised to -0.2%

• HICP -0.5% vs -0.3% y/y expected
• Prior +0.8%
• HICP -1.3% vs -1.1% m/m expected
• Prior -0.6%; revised to -0.7%

Italian headline annual inflation slumps to its weakest level since April 2016, as price pressures across the European region remains more subdued in August. This just reaffirms the narrative that the ECB will keep the stimulus tap flowing for an extended period of time.