Consumer prices were revised a little softer in the final report for May. The monthly increase in the CPI was shaved a tick to 0.3 percent, in turn reducing the provisional annual inflation rate 0.1 percentage points to 1.0 percent. However, this was still up from a final 0.5 percent in April and equalled its highest mark since September 2017.
The flash HICP followed suit and also now shows a 0.3 percent monthly rise and 1.0 percent yearly rate, up from 0.6 percent at the start of the quarter.
As indicated in the provisional data, the acceleration in the yearly CPI rate was largely attributable to unprocessed food (2.4 percent after 0.7 percent) and non-regulated energy (5.3 percent after 2.7 percent). Transport (1.7 percent after minus 0.7 percent) and tobacco (3.4 percent after 2.8 percent) also contributed. As a result, core inflation, which excludes energy and unprocessed food, climbed 0.3 percentage points to 0.8 percent and so just more than reversed April's 0.2 percentage point fall.
The bounce in Italian inflation last month is in keeping with the spikes seen elsewhere in the Eurozone and will similarly have been boosted by favourable base effects. Underlying trends remain essentially flat.