INFLATION AT 2.7% FOR THE MONTH OF JUNE

In May salaries have increased by 2.3%, well below inflation confirmed at 2.7%.

The cost of living has increased above the scheduled data due to the fragile Euro and the rising gas price. In June it has reached the levels of January 1997 with an increase of 0.3% in respect of the previous month.

Transport increased by 1.1% as regards the month of May and by 4.8% in respect of the month of June 1999.

Housing and water also increased, as well as hotels and restaurants.

Vincenzo Visco, Treasury Minister, declared himself not at all worried and said that the increase was due to gas prices and devaluation. Unions, however, disagree with him because from Istat data it is clear that retributions only increased by 2.3%, far below the cost of living.

The coming contract renewals will have to aim at an increase well over actual inflation so that purchase power can be recovered.

Adusbef (association of bank and financial consumers) calculated that by the end of the year families will have spent Lit. 1,839,000 more than scheduled and blames the government for its policy aiming at "systematically looting medium-low family budgets".