Italy July EU-harmonised CPI rises to 1.7% y/y, well above forecasts

ROME (Reuters) -Italian EU-harmonised consumer prices (HICP) fell 0.8% month-on-month in July, preliminary data showed on Wednesday, while annual inflation accelerated to 1.7% from 0.9% in June for its highest reading since last October.

The annual rate was above the median forecast of a 1.2% year-on-year rise, in a Reuters survey of 17 analysts.

Official statistics agency ISTAT also reported that the main domestic price index (NIC), rose 0.5% on the month and 1.3% annually in July, following a 0.8% annual rate in June.

The annual rate acceleration reflects the softening of the year-on-year decline in energy goods prices, the statistics bureau said.

The HICP monthly decline was due to the summer sales, not taken into account by NIC index.

Core inflation, net of fresh food and energy, was running at 2.5% year-on-year on the HICP index in July, up from 2.1% the previous month.

The figure was released in advance for technical reasons, ISTAT said.

(Reporting by Antonella Cinelli, editing by Gavin Jones and Tomasz Janowski)