Italy inflation: ‘no need to panic’

Inflation in Italy hit a 12 year high during March…

Italy's inflation rate jumped from 2.9% in February to 3.3% in March, the highest since September 1996, national statistics bureau Istat said in its monthly preliminary estimate Monday.  The main results were as follows:

• Petrol was 13.2% more expensive than March 2007.
• Diesel prices were 20.2% higher.
• Home heating fuel was up 21%.
• Pasta cost 17% more than a year ago.
• Bread was up 13.2%.
• The cost of dairy products and eggs was 8%
• Milk soared by 10.5%.
• Fruit was up 5.8%.
• Vegetables rose by 4.2% up.
• Beef was 4% more expensive than a year ago
• Poultry prices were up 5.9% up.
• Overall, food costs were 5.5% higher than March 2007.
• Transport costs were up 5.8% up.

The month-on-month rise in the consumer price index was an unusually high 0.5%, Istat said. The definitive figures, which are usually very close to the preliminary estimates, will be issued in mid-April.

A spokesperson from the Italian Union of industrialists Confindustria warned against alarmist reactions:  “Because the largest price rises are concentrated in a few strategic sectors of the economy, they do not represent an inflationary cycle, so there is no need to panic”.