Italy's consumer price inflation remained stable at the year's end, aligning with initial estimates, as reported by the national statistical office on Thursday. Concurrently, distinct data revealed a mild increase in the country's foreign trade surplus for November, attributed to a sharper decline in imports relative to exports.
In December, consumer price inflation persisted at 1.3 percent, matching November's figures and corroborating preliminary insights released on January 7. Unprocessed food prices saw an accelerated annual rise of 3.8 percent, compared to a 2.3 percent increase in the previous month. Conversely, the costs associated with recreational services, including repair and personal care, decreased to an annual rate of 3.1 percent from 3.7 percent.
Further analysis indicated that regulated energy goods experienced a significant increase in annual price growth to 12.7 percent from the previous 7.4 percent. Meanwhile, non-regulated energy products saw a moderated decline to 4.2 percent from 6.6 percent. On a month-over-month basis, consumer prices climbed marginally by 0.1 percent in December, in line with projections.
For the year 2024, the average annual consumer price change is projected at 1.0 percent, a decline from the 5.7 percent observed in 2023. The inflation rate, according to the harmonized index of consumer prices (HICP), slightly eased to 1.4 percent in December, down from 1.5 percent in November, with a monthly increment of 0.1 percent. These findings were consistent with earlier estimates.
Turning to trade, November saw the trade surplus increase to EUR 4.22 billion, compared to EUR 4.05 billion in the same month the prior year. Year-on-year, exports contracted by 2.7 percent, while imports declined by 3.2 percent, with the motor vehicle sector contributing significantly to the reduction.
The export downturn was largely driven by a marked decrease in sales to EU markets, extending beyond Italy's main EU trading partners to include both the United States and China, as noted by the statistical agency. On a seasonally adjusted basis, exports rose by 1.4 percent monthly, whereas imports saw a smaller growth of 0.4 percent, leading to a rise in the trade surplus to EUR 3.85 billion from EUR 3.29 billion.
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