Deflation is an important symptom of economic slowdown
Italy recorded deflation of 0,2% in May, both compared to the same period in 2019 and compared to April, which represents the first negative result in the national price index since October 2016.
The number was released this Monday (15) by the National Statistics Institute (Istat), which revised downwards the previous estimate, which was deflation of 0,1% last month.
“In May, inflation in Italy became negative again for the first time since October 2016 [when the index was -0,2%]”, says Istat.
According to the institute, the drop was caused mainly by a “strong reduction in fuel prices”.
“The May price indices were prepared in the context of the health emergency caused by the coronavirus in Italy, which prolonged the suspension of activities in broad consumer sectors and services,” states Istat.
Deflation is an important symptom of a slowing economy, as prices fall to try to stimulate weak demand. (HANDLE)
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