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Italy inflates to 12 year high

Italy's latest inflation figures do not make pleasant reading.

According to national statistics bureau Istat, Italy's year-on-year inflation rate in June hit 3.8%, its highest since July 1996.

Istat also reported that its consumer price index rose 0.4% over May, when inflation climbed to 3.6%, its highest since August 1996.

Aggravating inflation again this month were the soaring costs of pasta products and other wheat products along with runaway prices for fuels.

Compared to June 2007, pasta prices were up 22.4%, after climbing 20.7% the previous month, while bread cost 13% more, compared to 13.3% more in May.

Food and non-alcoholic beverage prices also rose above average, jumping 6.1% in one year.

Energy prices in general rose 14.8% over June of last year, compared to a 13.1% hike in May, and were 2.8% higher than the previous month.

Diesel prices in one month jumped 5.5% and were 31.5% higher than June 2007, while gasoline prices rose 4.7% for the month and 12.6% for the year.

A spokesperson for Istat tried to focus on the positive: "Despite hitting a 12-year high, inflation in Italy was below that of the 15-nation euro zone, where it rose this month to 4%, from 3.7% in May".