Italy September preliminary CPI -0.5% vs -0.4% y/y expected

Latest data released by Istat - 30 September 2020

• Prior -0.5%
• CPI -0.6% vs -0.5% m/m expected
• Prior +0.3%

• HICP -0.9% vs -0.4% y/y expected
• Prior -0.5%
• HICP +1.0% vs +0.9% m/m expected
• Prior -1.3%

Italian price pressures continue to keep in deflation territory with the more subdued readings here mirroring what we have seen from elsewhere in the region. This just sets up expectations for a softer Eurozone report on Friday and that will keep ECB policymakers on their toes as inflation continues to threaten more negative developments moving forward.