Prices down 0.1% Aug, deflation confirmed

First since Sep 1959

(ANSA) - Rome, September 12 - The consumer price index fell an annual 0.1% in August, Istat said Friday, confirming that deflation had hit the Italian economy for the first time since September 1959 when, in stark contrast to today, the country was roaring into a long boom.

The price index had risen 0.1% in July. Fuel prices, 1.2% lower than August 2013, led the downward price spiral, Istat said in confirming estimates issued two weeks ago. The 'shopping trolley' of most commonly bought goods went into deflation in August too, Istat said. The prices of food, household goods and personal care goods fell by 0.2% over the year, it said.

The Italian economy recently dipped back into its third recession in six years amid fears Japanese-style stagnation may be lurking. Premier Matteo Renzi has readied a raft of pump-priming measures.