Italy's annual inflation rate in 2008 averaged out at 3.3%, its highest in 12 years, national statistics bureau Istat reported on Monday.
In 2007 Italy's inflation rate was 1.8%.
Last month Italy's year-on-year inflation rate 2.2%, down from 2.7% in November, with a 0.1% monthly decline in the cost of living index .
Istat explained that the year-on-year decline in December was due to a 16.2% drop in energy costs, which fell 4% over November.
Unleaded fuel prices declined 8.1% from November to December and were 16.3% lower than December 2007, while diesel prices last month were down 7.6% for the month and 12.7% for the year.
The surge in pasta prices subsided somewhat in December but remained 28.2% higher than the same month in 2007, as opposed to a 29.8% year-on-year hike in November.
Compared to last November, pasta prices in December diminished 0.2%.
Bread prices in December were down 0.1% for the month and up 3.4% for the year.
Prices also slowed last month for milk, cheese, eggs and meat.
