Italy's inflation slows less than expected

Share this article

Prices in Italy were down 0.2 percent on a month earlier. Photo:
14:03 CET+01:00
Italian inflation slowed in October but less than analysts had expected, official data showed on Tuesday, amid concern that weak growth in Europe could cause a deflationary spiral.

Italy's annual inflation was 0.8 percent in October, compared to 0.9 percent in September, the national statistics agency Istat said.

Prices were down 0.2 percent on a month earlier.

On Thursday the European Central Bank cut its key interest rates amid concerns that slowing inflation in the euro area could turn into a vicious cycle of falling prices.

The ECB reduced its benchmark "refi" rate by a quarter-point to near-bottom 0.25 percent.

Speculation of a pending rate cut had briefly surged when new data showed eurozone inflation slowing unexpectedly to a four-year low of 0.7 percent last month, raising the spectre of deflation.

Story continues below…

Italy has the third-biggest economy in the eurozone.

Don't miss a story about Italy - Join us on Facebook and Twitter.

Share this article

From our sponsors

Last chance to vote absentee in the US elections

Election Day in the U.S. is less than a month away, and time is running out for Americans living overseas to vote absentee. Here's what to do before it’s too late.


Popular articles