Italian inflation slowed, mirroring a trend across Europe’s major economies and fueling optimism that the worst price gains since the euro was introduced may have peaked.
(Bloomberg) — Italian inflation slowed, mirroring a trend across Europe’s major economies and fueling optimism that the worst price gains since the euro was introduced may have peaked.
Inflation eased to 12.3% from a year earlier in December from 12.6% the previous month, data released Thursday by the ISTAT national statistics institute showed. Food and electricity were among the biggest price increases.
The reading raises hopes that months of energy-driven inflation is starting to retreat — something that could allow the European Central Bank to increase interest rates less aggressively with the region likely in a recession. Figures released in recent days have showed moderating price growth in Germany, France and Spain.
Inflation data for the euro zone as a whole, due Friday, are also expected to show a deceleration into single digits. ECB policymakers have already hiked rates by 250 basis points since July.
Rising borrowing costs are an issue for indebted countries like Italy. Inflation, too, looks set to be an enduring problem after the central bank lifted its projections for consumer-price increases for the next three years.
–With assistance from Giovanni Salzano.
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