Italy EU-harmonised CPI slows to 2.9% y/y in July, slightly above forecast

ROME, July 31 (Reuters) - Italian EU-harmonised consumer prices (HICP) fell 1.0% in July from the month before due to seasonal summer discounts, with the annual inflation rate slowing slightly to 2.9% from June's 3.0%, preliminary data showed on Friday, amid high energy costs due to turmoil in the Middle East.

The year-on-year reading was slightly above a median forecast in a Reuters survey of 17 analysts which pointed to a rise of 2.8%, whereas the month-on-month data matched the forecast.

Official statistics agency ISTAT also reported that the main domestic price index (NIC), which excludes temporary discounts, was up 0.2% month-on-month in July and up 2.8% annually, following a 3.0% annual rate in June.

Core inflation (net of fresh food and energy) was running at 1.7% year-on-year on the HICP index in July, accelerating from 1.5% in June.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)