July 29, 2016 / 9:01 AM / a year ago

Italy July EU-harmonised CPI shows deflation for sixth month running

July 29 (Reuters) - Italian EU harmonised consumer prices (HICP) fell a preliminary 1.8 percent month-on-month in July and were down 0.1 percent from the year earlier, the sixth consecutive month of annual price deflation, data showed on Friday.

The HICP was slightly above the median forecast of -1.9 percent month-on-month, -0.2 percent year-on-year in a Reuters survey of 12 analysts.

Official statistics agency ISTAT also reported that the main domestic price index (NIC), was up 0.2 percent on the month and down 0.1 percent annually, also the sixth month of annual deflation.

The lower month-on-month reading for the HICP is due to the impact of summer discount sales for clothes and shoes. The NIC index does not include items affected by temporary discounts.

The depth of deflation has been easing in the last few months. The 0.1 percent year-on-year price fall seen in July marked the highest reading since January for both the HICP and the NIC.

Core inflation (net of fresh food and energy) was running at 0.6 percent year-on-year the NIC index in July, up from 0.5 percent in June. No core inflation data is available for the HICP. ISTAT gave the following preliminary breakdown: The EU-harmonised index (HICP):

JULY JUNE MAY Monthly change -1.8 0.2 0.3 Yr/yr change -0.1 -0.2 -0.3 Index (base 2015=100) 99.0 100.8 100.6 The NIC index:

Monthly change 0.2 0.1 0.3 Yr/yr change -0.1 -0.4 -0.3 Index (base 2015=100) 100.1 99.9 99.8 ISTAT gave the following sector-by-sector breakdown for the HICP in July:

Sector m/m yr/yr

Food -0.8 0.7

Alcoholic drinks, tobacco 0.1 2.0

Clothing -21.9 -0.2

Housing, electricity, fuel 0.2 -1.9

Domestic goods -0.5 0.3

Health spending 0.1 1.1

Transport 1.1 -2.2

Communications -0.9 1.5

Recreation 1.8 0.7

Education -0.1 1.0

Hotels, restaurants 0.3 0.9

Other goods, services -0.6 0.4

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