ITALY DATA: Preliminary October HICP rose 0.9% m/m and 3.8% y/y, up
from +3.6% y/y in September and the strongest y/y gain since September
2008. The September 17 VAT hike )part of the governments austerity
package) had a ‘significant’ impact on the m/m preliminary data, ISTAT
said. –The main domestic index (NIC) rose 0.6% m/m, +3.4% y/y, up from
+3.0% y/y in September, and the strongest y/y gain since October 2008.
–Core inflation based on the domestic index rose 2.6%, up from 2.4% the
previous month. –Net of energy, the NIC index accelerated to 2.5%, from
2.3% in Sept. –Preliminary ‘NIC’ data provides an acquired inflation
rate of 2.7% for 2011