ISTAT CONFIRMS INFLATION RISE

On May 30 Istat confirmed a rise in prices from 2.3% in April to 2.5%. Prices marked a 5.6% annual basis rise in electricity, 3.7% in transports and a 3.4% rise in respect of sanitary services. Rises also regarded hotels and restaurants (3.1%).

The only sector that showed a slow down was that of telephones (4%) thanks to discounts due to the pressure of competition on Telecom Italy.

Gas prices weighed heavily on consumer costs and though on May 30 gas lowered slightly there is tension between the government and gas companies.

At the end of May gas in Italy cost 80 lire more than in other European countries and gas companies are accused of having raised prices more than necessary and of taking advantage of increases in the price of raw oil.

Gas Union President, Pasquale De Vita, conversely, maintains that gas prices have increased less than elsewhere in Europe.

However, a week ago in Italy gas cost 96 lire more than in Spain, 103 lire more than in France and 141 lire more than in Germany.

The Euro, now less weak as compared to the dollar and the announcement by OPEC (gas producers association) of a possible increase in the production of raw oil might be sufficient reasons for a lowering of prices next month.