Italian inflation confirmed at 1.1 percent in August

Inflation in Italy stays flat in August at 1.1% year-on-year

Italy's consumer price index (CPI), a measure of inflation, remained unchanged in August at 1.1% year-on-year, the country's statistical office Istat reported on Friday.

This was in line with market expectations and comes after CPI rose by 1.3% in July.

On a monthly basis, CPI increased by 0.1% in August, after rising by 0.4% in July.

The core inflation rate, which excludes volatile components such as food and energy, also remained unchanged at 0.8% year-on-year in August.

Istat said that the slowdown in inflation was mainly due to a decrease in the prices of food and non-alcoholic beverages, as well as a smaller increase in the prices of energy and regulated services.

The latest inflation figures are likely to be welcomed by the European Central Bank (ECB), which is targeting an inflation rate of 2% in the eurozone.

However, the ECB is still expected to keep its monetary policy loose in the coming months, as the eurozone economy is still recovering from the COVID-19 pandemic.