# Italy CPI rises again in April amid energy prices volatility
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Italian Inflation Surges in April
Meta Description: Italian inflation surged in April due to energy price spikes, reaching 8.8% year-on-year. Learn more about the impact on the economy and future outlook.
URL: https://financedigest.com/italy-cpi-rises-again-in-april-amid-energy-prices-volatilityhtml

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By Antonella Cinelli

ROME (Reuters) – Italian inflation jumped unexpectedly in April, driven by another spike in energy prices, official statistics agency ISTAT said on Tuesday.

EU-harmonised consumer prices (HICP) rose a preliminary 1.0% month-on-month, with annual inflation accelerating to 8.8% from 8.1% in March, well above the median forecast of a 7.8% year-on-year rise.

Italy’s inflation dynamic continues to be affected by an ongoing adjustment in [energy prices](https://www.financedigest.com/in-germany-energy-price-shock-triggers-fears-of-insolvency-wave.html "In Germany, energy price shock triggers fears of insolvency wave"), its most volatile component, wrote Loredana Maria Federico, chief Italian economist at UniCredit.

ISTAT underlined that the annual rise was mainly due to non-regulated energy products such as fuel for domestic use, [electricity in the liberalised market](https://www.financedigest.com/the-next-upcoming-years-to-see-the-gastric-electric-stimulators-market-grow-kinetically.html "The Next Upcoming Years To See The Gastric Electric Stimulators Market Grow Kinetically") and vehicle fuels. In the main domestic price [index these elements jumped](https://www.financedigest.com/dollar-index-jumps-after-u-s-retail-sales-show-surprise-rebound.html "Dollar index jumps after U.S. retail sales show surprise rebound") 26.7% in April from a 18.9% increase the month before.

On the contrary, [regulated energy](https://www.financedigest.com/uk-finance-regulators-should-pay-heed-to-energy-security-policy-says-sunak.html "UK finance regulators should pay heed to energy security policy, says Sunak") products showed a wider decline than in March (-26.4% from -20.3%).

CORE INFLATION IN FOCUS

Given how [low gas prices are on the wholesale market](https://www.financedigest.com/digitized-assimilation-to-drive-the-low-vision-aids-market.html "Digitized assimilation to drive the Low Vision Aids Market"), we expect this to be only a temporary pause in the downward adjustment in inflation,” said UniCredit’s Federico, adding that “the dynamics of both food-price and core inflation moved broadly in line with expectations.

Italian core inflation ( [net of fresh food and energy](https://www.financedigest.com/mcdonalds-targets-net-zero-emissions-by-2050-from-meat-to-energy.html "McDonald’s targets net zero emissions by 2050, from meat to energy")) was stable at 6.8% year-on-year on the HICP index in April.

In the euro zone, overall price growth picked up to 7.0% last month from 6.9% in March, but the underlying [inflation growth unexpectedly eased](https://www.financedigest.com/factbox-government-measures-to-ease-inflation-pain-6.html "Factbox-Government measures to ease inflation pain") to 7.3% from 7.5%, based on Eurostat data.

A surprise growth in core [inflation has been in focus in recent months](https://www.financedigest.com/spains-12-month-inflation-slows-down-again-in-december-to-5-8.html "Spain’s 12-month inflation slows down again in December to 5.8%"), suggesting that the ECB could have more work to do to contain mounting price pressures.

In Italy the path towards a further [slowdown in inflation](https://www.financedigest.com/london-stocks-recover-set-for-weekly-drop-as-slowdown-inflation-fears-linger.html "London stocks recover; set for weekly drop as slowdown, inflation fears linger") remains solid, with producer prices also progressively showing a slowing signal, ING senior economist Paolo Pizzoli wrote.

But the [data show that the process is likely to be slow and should only accelerate](https://www.financedigest.com/interoperability-of-data-to-accelerate-the-biobanks-market.html "Interoperability of data to accelerate the Biobanks Market") in the second half of the year,” he added.

(Reporting by Antonella Cinelli, Valentina Consiglio, editing by Keith Weir)


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