Italy inflation inflates again

Italy's inflation rate hit 2.9% in February, forcing Istat to revise it's yearly forecast...

National statistics bureau Istat confirmed Last week that it had revised its year-on-year inflation rate for January, lifting it from an earlier calculation of 2.9% to 3%. Without calculating energy and fuel prices, Italy's inflation rate would have been 2.4% in February and 2.5% in January, Istat said.

The highest year-on-year prices increases last month were for transport (+5.5%), food and non-alcoholic beverages (+4.9%) and housing and utility costs (+4%) Communications prices in one year fell 8% and health products and services dipped 0.1%.

Compared to January, prices for miscellaneous goods and services rose 0.6%, food and non-alcoholic beverages climbed 0.5%, home furnishings and services were up 0.5%, while those for entertainment, recreation and culture jumped 0.4%. The only sector to see a month-on-month decline was communications, off 0.4%.

A document issued by the economy ministry said the euro zone's third largest economy would grow just 0.6 percent in 2008, down from the 1.5 percent it had forecast last autumn.

"The Italian economy will be hit this year by the significant worsening of the international macro-economic situation and the high degree of uncertainty surrounding the global scenario," the document said.