Inflation continues to climb, +3.6% in May

| Sat, 05/31/2008 - 03:04

Inflation in Italy continues to climb and this month's year-on-year rate hit 3.6%, its highest since August of 1996, national statistics bureau Istat said in a preliminary report.

The consumer price index, Istat added, 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 biggest year-on-year price increases this month were for home expenses and utilities (+6.8%), transport (+6.2%) and for 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%.

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.

Excluding the energy sector, producer prices were up 3.8% for the year and 0.4% for the month.

Topic: