The Italian National Institute of Statistics (ISTAT) reports that consumer price inflation declined by 0.1% from August 2013 to August 2014.
Italian consumer prices fell 0.1 percent year-on-year in August of 2014, matching preliminary estimates. The country's annual inflation rate touched the negative territory for the first time in nearly 55 years due to a drop in energy prices.
Year-on-year, prices of energy fell 3.6 percent in August, mainly driven by a 1.2 percent drop in cost of non-regulated energy products. Additional downward pressures came from food cost (-0.5 percent), mainly unprocessed food (-1.8 percent) and communication (-9.0 percent). Meanwhile, prices of services slowed (0.6 percent in August compared with a 0.7 percent increase in July).
Eurozone Policymakers Concerned About Falling Prices
A Financial Times headline portrays falling prices as a negative thing: Deflation Takes Shine Off Sales for Italy's Shopkeepers.