14 December 2017
Consumer prices: final data November 2017
In November 2017, the Italian consumer price index for the whole nation (NIC) decreased by 0.2% on
monthly basis and increased by 0.9% compared with November 2016 (it was +1.0% in October 2017).
The flash estimate was confirmed.
In November, the further slight slowdown of the growth on annual basis of All items index was mainly due
to the deceleration of prices of Unprocessed foo d (+3.2% down from +3.8% in October) and Services
related to recreation, including rep air and personal care (+0.9% down from +1.4%), partially offset by the
acceleration of prices of Non-regulated energy products (+5.0%, up from +4.3% in the previous month).
As a consequence, Excluding energy and unprocessed food, core inflation was +0.4% (0.1 percentage
points lower than in October) and inflation excluding energy was +0.6% (+0.7% in the previous month).
The decrease on monthly basis of All items index was mainly due to the prices of Services related to
recreation, including repair and pers onal care (-1.4%) and Services related to transport (-1.0%). Both of
them were affected by seasonal factors. These dynamics were slightly offset by the increase on monthly
basis in prices of Non-regulated energy products (+1.3%) because of fuels and diesel.
The annual rate of change of prices of Goods was + 1.3% (up from +1.2% in October) and that one of
prices of Services was + 0.5% (down from +0.7%). As a consequence, the inflationary gap between
Services and Goods was still negative and equal to -0.8 percentage points (it was -0.5 in October 2017).
Prices of Grocery and unprocessed food increased by 0.3% on monthly basis and by 1.6% on annual basis
(down from +1.7% in the previous month).
In November 2017, the rate of change of Italian harmonized index of consumer prices (HICP) decreased by
0.2% compared with the previous month and increased by +1.1% with respect to November 2016 (as in the
previous month). The flash estimate was confirmed.
Core inflation, measured by Italian HICP, was +0. 5% (as in October) while both inflation excluding energy,
food, alcohol and tobacco (+0.4%) and inflation excluding Energy (+0.7%) decelerated by 0.1 percentage
points with respect to October.
In November 2017, the rate of change Italian harmonized index of consumer prices at constant tax rates
(HICP-CT) decreased by 0.2% compared with the previous month and increased by 1. 0% with respect to
November 2016 (as HICP). Therefore, the difference between HICP and HICP -CT growth rates 1 – which
incorporates the effects of changes i n indirect taxes occurred in the last twelve months – was positive and
equal to 0.1 percentage points.
ITALIAN CONSUMER PRICE INDICES. November 2017, (base 2015=100)
INDICES
November 2017
Nov-17
Oct-17
Nov-17
Nov-16
Italian consumer price index for the whole nation (NIC) 100.8 -0.2 0.9
Italian harmonized index of consumer prices (HICP) 101.8 -0.2 1.1
1 The difference between the rates of change of HICP and HICP -CT represents the upper limit of the impact of changes in indirect taxes occurred in the last twelve months on HICP, assuming their full and instantaneous pass-through on prices paid by consumers.
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TABLE 1. ITALIAN CONSUMER PRICE INDEX FOR THE WHOLE NATION (NIC), BY ECOICOP DIVISION. November 2017,
weights, indices and percentage changes (base 2015=100)
DIVISIONS
Weights
Indices
Nov-17
Oct-17
Nov-17
Nov-16
Oct-17
Oct-16
Nov-16
Oct-16
Food and non-alcoholic beverages
164,968
102.5
0.3
1.9
2.1
0.5
Alcoholic beverages, tobacco
32,019
102.3
0.0
0.1
0.1
0.0
Clothing and footwear
73,620
101.0
0.1
0.2
0.2
0.1
Housing, water, electricity, gas and other fuels
107,280
100.5
0.1
2.0
2.0
0.1
Furnishings, household equipment and routine household
maintenance
72,371
100.3
0.0
0.0
0.0
0.0
Health
86,870
100.5
0.0
0.1
0.1
0.0
Transport
139,331
101.5
-0.1
2.7
2.4
-0.4
Communication
26,125
97.0
-0.1
-1.0
-1.6
-0.7
Recreation and culture
78,409
100.3
-0.2
0.5
0.4
-0.3
Education
12,119
83.8
0.0
-16.2
-16.1
0.1
Restaurants and hotels
114,864
101.3
-1.8
1.1
1.7
-1.3
Miscellaneous goods and services
92,024
101.3
0.1
0.6
0.6
0.1
ALL ITEMS
1,000,000
100.8
-0.2
0.9
1.0
-0.1
TABLE 2. ITALIAN CONSUMER PRICE INDEX FOR THE WHOLE NATION (NIC), BY TYPES OF PRODUCT. November 2017,
weights, indices and percentage changes (base 2015=100)
SPECIAL AGGREGATES
Weights
Indices
Nov-17
Oct-17
Nov-17
Nov-16
Oct-17
Oct-16
Nov-16
Oct-16
Food including alcohol:
175,273
102.4
0.4
1.8
1.9
0.5
Processed food including alcohol
105,071
100.9
0.1
0.8
0.8
0.1
Unprocessed food
70,202
104.5
0.7
3.2
3.8
1.3
Energy:
84,456
99.7
0.7
4.4
4.0
0.3
Regulated energy products
41,439
98.4
0.0
3.8
3.9
0.1
Non-regulated energy products
43,017
101.3
1.3
5.0
4.3
0.6
Tobacco
21,714
103.4
0.0
0.2
0.2
0.0
Non energy industrial goods:
254,637
100.5
0.0
0.0
-0.1
-0.1
Durable goods
84,846
100.4
0.0
-0.1
-0.4
-0.3
Non-durable goods
66,173
100.1
0.1
0.0
-0.1
0.0
Semi-durable goods
103,618
100.7
0.0
0.1
0.1
0.0
Goods
536,080
101.0
0.2
1.3
1.2
0.1
Services related to housing
77,003
101.5
0.1
0.5
0.5
0.1
Services related to communication
19,445
98.5
0.0
-0.3
-0.3
0.0
Services related to recreation, including repair and
personal care
176,824
101.0
-1.4
0.9
1.4
-0.9
Services related to transport
76,089
101.8
-1.0
2.2
2.3
-0.9
Services - miscellaneous
114,559
99.5
0.0
-1.2
-1.1
0.1
Services
463,920
100.7
-0.7
0.5
0.7
-0.5
ALL ITEMS
1,000,000
100.8
-0.2
0.9
1.0
-0.1
All items excluding energy and unprocessed food (Core
inflation)
845,342
100.7
-0.4
0.4
0.5
-0.3
All items excluding energy, food, alcohol and tobacco
718,557
100.6
-0.4
0.3
0.4
-0.3
All items excluding energy
915,544
101.0
-0.2
0.6
0.7
-0.1
Grocery and unprocessed food
198,287
102.0
0.3
1.6
1.7
0.4
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TABLE 3. ITALIAN HARMONIZED CONSUMER PRICE INDEX (HICP), BY ECOICOP DIVISION. November 2017, weights,
indices and percentage changes (base 2015=100)
DIVISIONS
Weights
Indices
Nov-17
Oct-17
Nov-17
Nov-16
Oct-17
Oct-16
Nov-16
Oct-16
Food and non-alcoholic beverages
175,240
102.7
0.4
2.0
2.3
0.7
Alcoholic beverages, tobacco
34,015
102.4
0.1
0.3
0.2
0.0
Clothing and footwear
85,400
110.2
-0.2
0.3
0.3
-0.2
Housing, water, electricity, gas and other fuels
114,100
100.5
0.1
2.0
2.0
0.1
Furnishings, household equipment and routine household
maintenance
77,035
100.6
0.2
0.2
-0.1
-0.1
Health
43,047
101.9
0.0
0.7
0.7
0.0
Transport
147,915
101.5
-0.1
2.7
2.4
-0.4
Communication
27,786
97.0
-0.2
-1.1
-1.6
-0.7
Recreation and culture
62,346
100.5
-0.2
0.8
0.5
-0.5
Education
12,885
83.8
0.0
-16.1
-16.0
0.1
Restaurants and hotels
122,115
101.4
-1.8
1.1
1.7
-1.3
Miscellaneous goods and services
98,116
101.7
0.0
0.6
0.7
0.1
ALL ITEMS
1,000,000
101.8
-0.2
1.1
1.1
-0.2
All items at constant tax rates
1,000,000
101.7
-0.2
1.0
1.1
-0.1
TABLE 4. ITALIAN HARMONIZED CONSUMER PRICE INDEX (HICP), BY SPECIAL AGGREGATES. November 2017, weights,
indices and percentage changes (base 2015=100)
SPECIAL AGGREGATES
Weights
Indices
Nov-17
Oct-17
Nov-17
Nov-16
Oct-17
Oct-16
Nov-16
Oct-16
Food, alcohol and tobacco:
209,255
102.7
0.4
1.7
1.9
0.6
Processed food (including alcohol and tobacco)
117,212
101.5
0.3
0.9
0.7
0.1
Unprocessed food
92,043
104.2
0.6
2.8
3.3
1.1
Energy:
89,782
99.8
0.7
4.4
4.0
0.3
Electricity, gas, solid fuels and heat energy
48,159
98.4
0.0
3.5
3.6
0.1
Liquid fuels and fuels and lubricants for personal
transport equipment
41,623
101.6
1.4
5.4
4.6
0.6
Non-energy industrial goods:
263,440
104.1
0.1
0.4
0.2
-0.1
Durable goods
80,863
101.1
0.1
0.2
0.0
-0.1
Non-durable goods
64,613
101.8
0.2
1.0
0.8
0.0
Semi-durable goods
117,964
107.6
-0.2
0.2
0.1
-0.3
Goods
562,477
102.8
0.3
1.6
1.5
0.2
Services related to housing
81,849
101.5
0.1
0.6
0.6
0.1
Services related to communication
27,786
97.0
-0.2
-1.1
-1.6
-0.7
Services related to recreation, including repairs and
personal care
166,219
101.1
-1.6
1.0
1.6
-1.0
Services related to transport
80,722
101.8
-1.0
2.2
2.3
-0.9
Services - miscellaneous
80,947
98.5
0.0
-2.2
-2.1
0.1
Services
437,523
100.6
-0.7
0.5
0.6
-0.6
ALL ITEMS
1,000,000
101.8
-0.2
1.1
1.1
-0.2
All items excluding energy and unprocessed food (Core
inflation)
818,175
101.8
-0.3
0.5
0.5
-0.3
All items excluding energy, food, alcohol and tobacco
700,963
101.8
-0.5
0.4
0.5
-0.4
All items excluding energy
910,218
102.0
-0.3
0.7
0.8
-0.2
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TABLE 5. REVISIONS OF CONSUMER PRICE INDICES. November 2017, indices and percentage changes (base 2015=100)
Flash estimates Final data
INDICES RATES OF CHANGE% INDICES RATES OF CHANGE %
November 2017 Nov-17 Oct-17 Nov-17 Nov-16 November 2017 Nov-17 Oct-17 Nov-17 Nov-16
Italian consumer price index for the whole
nation (NIC)
100.8
-0.2
0.9
100.8
-0.2
0.9
Italian harmonized index of consumer prices
(HICP)
101.8
-0.2
1.1
101.8
-0.2
1.1
For more details please refer to the Italian version
Date of previous release: 30 November 2017 Date of next release: 5 January 2018
Contact person:
Maria Assunta Scelsi ([email protected])
Istat – Italian National Institute of Statistics
Via Cesare Balbo 16 – 00184 Rome, Italy
phone +39 06 4673.2795
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Consumer Price Indices Methodological note
The Consumer Price Index for the whole nation (NIC) is based on the consumption of the entire
present population.
The Harmonised index of Consumer Prices (HICP) , calculated according to the EU regulations in force,
is used for the comparis on of inflation between Member States and as a key indicator for the monetary
policy of the European Central Bank.
Consumer price indices are calculated using a chained Laspeyres formula, in which the basket of products
and the weighting system are update d annually. Monthly indices for the current year are calculated with
reference to December of the previous year (calculation base) and subsequently chained over the period
chosen as a reference base in order to be able to measure price trends over a period of time longer than a
year2.
Reference base year for NIC and HICP
The NIC indices are expressed with 2015=100 as a reference base year 3.
The HICP are calculated and published with 2015=100 as a reference base, as established by the EU
Regulation 2015/2010 of the European Commission of 11 November 2015.
Classification for consumer expenditure, basket of goods
Classification of consumption so far used for HICP, NIC and FOI is the international classification
ECOICOP (European Classification of Individual Consumption by Purpose), whose hierarchical structure
has 4 levels of disaggregation: Divisions, Groups, Classes of product and Subclasses of product.
Since the final data of January 2016, Istat has been adopted the classification ECOICOP, annexed to the
new European framework regulation on harmonised indices of consumer prices and the house price index,
(2016/792), that introduced an additional level of detail, the subclasses of product. Anyway, in 2011 Istat
introduced two disaggregation levels: product sub-classes and consumption segments.
The 2017 basket for the Italian consumer price index for the whole nation (NIC) and for blue and white -
collar households (FOI) is made up of 1,481 elementary products, which are grouped into 920 products and
into 405 product aggregates. (1,476 in 2016 grouped into 901 products and 400 product aggregates).
TABLE 1. CLASSIFICATION NIC AND FOI INDICES. Year 2017 Year 2017 12 expenditure divisions 43 product groups 102 product classes 229 product sub-classes
302 consumption segments
405 product aggregates
920 products
1,481 elementary products
2 ISTAT calculates another index named Consumer Price Index for b lue - and white -collar worker households (FOI) based on consumption of households whose reference person is an employee. 3 The FOI indices are expressed with 2015=100 as a reference base year, too.
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The 2017 basket for the Italian harmonized index of cons umer prices (HICP) is made up of 1,498
elementary products, which are grouped into 923 products and then into 409 product aggregates (1,484 in
2016 grouped into 906 products and 404 product aggregates) 4.
Segments of consumption are the most disaggregated l evel for which NIC indices referring to the entire
national territory are disseminated. For HICP indices, the level of detail of the dissemination is that of the
product classes, but during 2017, it is expected that of the product subclasses. FOI national indices are
disseminated at level of expenditure divisions. At local level (geographical area, region, province), NIC
indices are published up to the product groups and FOI indices, just at provincial level, up to the divisions.
Furthermore, HICP indices by special aggregates (HICP-SA) are released. HICP-SA indices are calculated
using the same classification scheme and the same method adopted by Eurostat (therefore different from
the method used for the calculation of NIC indices by type s of product), in order to guarantee comparability
among the Italian HICPs and the HICP of the other EU countries and the HICPs for the EU and the euro
area produced by Eurostat5.
All indices and data are available and published on Istat data warehouse, I.Stat, inside the theme “Prices”
and subtheme “Consumer prices”. In addition to indices at national level, NIC indices at provincial, regional
and macro area level and FOI indices at provincial level are published too.
Price collection and calculation method for seasonal product price indices
The method for collecting and calculating prices of seasonal products is in accordance with Regulation
(EC) no 330/2009 of 22 nd April 2009, which sets out minimum standards for dealing with season al products
in the HICP 6. This method, also used for the NIC 7, is applied to the product groups and classes Fruit,
Vegetables, Clothing and Footwear.
The European Regulation defines as seasonal product that one consumers may not purchase in certain
periods of the year (at least one month), or they may purchase in modest or insignificant volumes. It also
establishes that in a given month seasonal products are considered in season or out of season.
On the basis of this standard, Istat defined a monthly cale ndar for the whole 2017, which establishes, in a
given month, when each specific product belonging to the above mentioned product groups or classes
must be considered in season or out of season . The adoption of a seasonality calendar entails that the
local consumer price survey is carried out only in months when the product in question is defined as in
season, while prices of out of season products will be estimated on the basis of a method that is consistent
with standards contained in the aforementioned European Regulation.
4 The difference between the two baskets is due to two ele ments: on one hand in the HICP basket (but not in the NIC/FOI one),
contribution to the NHS for pharmaceutical products, specialist practices and services of medical analysis (six items) are in cluded; on
the other hand in the NIC/FOI basket (but not in the HICP one), Games of chance are included.
5 HICP-SA indices have been released starting from data referred to February 2013.
The description of product classes which are included in the special aggregates is available on Eurostat web site at the following link:
http://ec.europa.eu/eurostat/ramon/nomenclatures/index.cfm?TargetUrl=LST_NOM_DTL&StrNom=HICP_2000&StrLanguageCode=E
N&IntPcKey=&StrLayoutCode=.
The HICP -SA calculation met hod is described in the HICP Compendium which is downloadable at the following link:
http://ec.europa.eu/eurostat/documents/3859598/5926625/KS-RA-13-017-EN.PDF/59eb2c1c-da1f-472c-b191-
3d0c76521f9b?version=1.0.
Back series starting from January 2001 are published on I.Stat, the warehouse of Istat statistics, inside the theme “Prices”.
6 It has been adopted starting from data referred to January 2011.
7 It is used for FOI indices, too.
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Survey geographical basis, rate of coverage and frequency of data collection
Data contributing to the compilation of monthly consumer price indices are traditionally collected in two
distinct surveys: the local survey, carried out by M unicipal Offices of Statistics, under Istat supervision and
coordination, and the central survey, carried out directly by Istat. In addition to these two ways, an
administrative source is used too, that is the database of fuel prices of Ministry of Economi c Development.
Local survey
In 2017 the geographical basis of the survey is made up of 80 municipalities (18 regional capitals and 61
provincial capitals) – which participate in the indices calculation for all the product aggregates of the basket
– and of other 16 municipalities participating in the survey for a subset of products, which includes local
tariffs (water supply, solid waste, sewerage collection, gas for domestic use, urban transport, taxi, car
transfer ownership, canteens in schools, public day nursery, etc.) and some local services (building worker,
football matches, cinema, theatre shows, secondary school education, canteens in universities, etc.).
Overall, the coverage of the index, measured in terms of resident population in the provinces wi th capitals
participating in the survey for all items in the basket, is 83.7%.
Concerning the basket subset including local tariffs and some local services – whose weight on the NIC
basket is equal to 6.0% – with the participation of the other 16 municipa lities, the coverage of the survey,
measured in terms of provincial resident population, is 92.4%.
Central survey
In 2017 price quotes collected each month directly by Istat are 137,500, of which:
137,000 via web, also using web scraping techniques, or collecting data from different providers. The
main data providers for the central price data collection are the following:
Italian Customs Agency, for Tobacco products and games of chance;
Italian Association of Concessionaries Highways and Tunnels (Aiscat), for motorway tolls;
Farmadati, for pharmaceutical products;
Italian Association of Publishers (AIE), for prices of school books;
Specialized magazine “Quattroruote” for prices quotes of cars and second hand cars;
Sanguinetti Editore, for prices of cars, motorcycles and motorbikes, caravans and motorhomes;
about 500 price quotes directly collected using the data by Insurance Companies.
An important news in central survey is that of Housing insurance services whose prices, monthly collected
by insurance company, refer to protection against most risks connected to property, such as fire, theft and
other damages.
The percentage of products observed directly by Istat calculated according to the weight assigned to each
product within the NIC is 23.6% in 2017 (as in the previous year).
Administrative sources
In 2017 automotive fuels price indices (the weight on the basket is 3.7%) are calculated using the data
base supplied by the Ministry of Economic Development, that collects prices for these products. 76,000
price quotes are monthly used to estimate inflation and they come from about 13,596 fuel stations on the
territory, that is 69.3% of the ones active and present in Ministry database.
The 13,596 fuel stations cover the entire national territory and they are located in the different geographical
areas as it follows: 3,600 in the North -West; 3,200 in the North -East; 3,000 in the Centre; almost 2,400 in
the South and about 1,400 in the Islands.
Frequency of data collection
With regard to the local survey, price collection is carried out in the first fifteen working days:
bi-monthly for products which show a strong temporal variability of their prices (fresh fruit and
vegetables, fresh fish; gas in cylinder and heating oil);
collecting three prices for month for the hotel bedroom referring to the first three Saturday of the
month;
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once a month, for the remaining products. For some goods or services, such as for example, water
supply, town gas and natural gas, urban transport by bus and combined urban transport, taxi or
tickets (contributions to NHS) for specialist practice, services of medical analysis laboratories and
X-ray centres and other paramedical services, it is detected the price applied the 15th day of the
month to which the index is referred.
Concerning the centralized survey, price collection is widely carried out once a month in the first fifteen
working days. Hereafter the exceptions to the general rule:
for some goods and services such as for example tobacco, games of chance, medicines,
telecommunications services, regional railway transport, wagon lits, out of town bus services, out of
town combined passenger transport, postal services, highway tolls car transfer ownership, car
overhaul, it is detected the price applied the 15th day of the month to which the index is referred;
three times per month, according an annual calendar fixed at the beginning of the year, for national
railway transport;
bi-monthly for passenger transport by air, passenger transport by sea and inland waterway and
magazines;
from the 9th to the 15th day of each month for daily newspapers;
on each day of the month for touristic, recreational and cultural services (fun parks entrance ticket,
bathing establishment, ski lifts, etc.).
Concerning the data base supplied by the Ministry of Economic Development, automotive fuel prices
applied on the first and the tenth working day of each month are used to compile consumer price indices.
Weighting structure In Table 1 the weighting structure for the year 2017 of NIC and HICP is reported.
TABLE 1. WEIGHTS USED FOR CALCULATING CONSUMER PRICE INDICES. BY EXPENDITURE DIVISION. Year 2017, percentage values EXPENDITURE DIVISIONS WEIGHTS NIC HICP Food and non-alcoholic beverages 16.4968 17.5240 Alcoholic beverages. tobacco 3.2019 3.4015 Clothing and footwear 7.3620 8.5400 Housing. water. electricity. gas and other fuels 10.7280 11.4100 Furnishings. household equipment and routine household maintenance 7.2371 7.7035 Health 8.6870 4.3047 Transport 13.9331 14.7915 Communication 2.6125 2.7786 Recreation and culture 7.8409 6.2346 Education 1.2119 1.2885 Restaurants and hotels 11.4864 12.2115 Miscellaneous goods and services 9.2024 9.8116 All items 100.0000 100.0000