Forex »

Italy Hit With Unemployment And Inflation Blows

James Boston
Share on StockTwits
Published on
www.finances.com
Italy Hit With Unemployment And Inflation Blows

The latest updates on the Italian macroeconomic situation caused some significant concerns this morning as both Inflation and Unemployment underwent further setbacks. The employment data was particularly disappointing as it build on the significant spike of last month to clearly reach it’s highest level since the economic crises began. The October number published this morning was 13.2%, this is the third straight month of increasing unemployment in Italy and surprised market analysts that had been viewing the recent increases more as an anomaly than a trend. The September number also under an upward revision to finalise at 12.7%. The fact that a negative trend is developing is undoubtedly an area of concern for the Italian, as well as the Eurozone, authorities. Of perhaps deeper concern however is the speed at which the Unemployment Rate is rising in Italy, which like most developed economies, is more used to gradual changes in the labour markets.

In what is without doubt a very negative month for the Italian economy, the Unemployment problem is added to by the confirmation that the rate of inflation has once again returned to below zero territory. The latest price growth readings, published in Preliminary format, for the month of November are showing a disappointing turnaround on the month. The month on month Consumer Price Index (CPI) has been stated as -0.2%, this eliminates the positive glimmer that was presented through the previous month’s 0.1% pickup, the market consensus estimates however were somewhat more pessimistic in their predictions of a -0.4% reading today. On a year on year basis the Italian CPI now reads 0.2%, this is in fact a pick up on the 0.1% seen last month but this can be attributed to the drop off in a negative reading at the early end of the twelve month period.

Share on StockTwits