World Economy

Italy Deflation Drops

Italy  Deflation DropsItaly  Deflation Drops

Italian deflation dropped this month, with an annual inflation rate of -0.3%, compared to -0.5% in April, thanks to a 0.3% rise in the month-on-month consumer price index, according to provisional data released by Istat on Tuesday, ANSA reported. The national statistics agency said the continuation of deflation was linked to the drop in energy prices, down 0.8% on May 2015. If energy were excluded from the calculations, Italy would have an annual inflation rate of 0.5%. Istat said the month-on-month rise was down to increases in tobacco and unprocessed food prices. Meanwhile, Italy’s unemployment rate rose to 11.7% in April, up from 11.5% in March (a figure that has been revised), Istat said. It said that the increase was largely down to a rise in the number of people on the labor market, as the number of people in employment actually climbed last month too. It said the number of people who were unemployed in April was 2,986,000, up 50,000 with respect to March, but 93,000 fewer than in April 2015.