Italy inflates to 12 year high

Italy’s inflation problems have continued over the last month…

According to the National Statistics Bureau Istat, inflation in Italy hit 3.6% in May - the highest level since August of 1996.

The consumer price index rose 0.5% over April, when the inflation rate stood at 3.3%. Italy's projected inflation rate for May was the same as the average for the 15-nation euro zone.

The Istat report also revealed the following:

• The biggest price increases were for home-expenses, utilities (+6.8%), transport (+6.2%) and food and non-alcoholic beverages (+5.7%).
  
  
• Prices for communications fell 3.5% over May 2007 while health and health services costs dipped 0.2%.
  
  
• Compared to April, the most significant price increases were for transport (+1.8%), home expenses and utilities (0.6%) and bar and restaurant services (+0.5%).
  
  
• Communication costs this moth fell 0.7% while prices for recreation, entertainment and culture retreated 0.2%.

A spokesperson for Istat explained: “The hike in transport costs was in large price due to the surge in fuel prices with gasoline leaping 5.2% over this April and 10.9% over May of last year, while diesel fuel soared 6.7% for the month and 26.2% for the year.

”In the food category, bread prices were 12.9% higher than May 2007, pasta jumped 20.4%, bread by 11.1% and milk prices increased 6.8% from year to year. Inflation is expected to continue to rise as producer prices in April climbed 6.3% in one year and 0.4% over March”.