(MENAFN) Official figures released on Friday by Italy's statistical department Istat showed that the country's annual inflation rate was 7.7 percent in March, down from 9.1 percent in February. The slowdown was attributed to price decreases in energy products. While prices of food, non-durable and durable goods, and services were almost stable, prices of unprocessed food, tobacco, and services related to recreation, including repair and personal care, increased.
The COVID-19 pandemic has had a significant impact on the Italian economy, with many businesses forced to shut down or reduce operations, leading to job losses and reduced consumer spending. The government has implemented various measures to mitigate the impact of the pandemic, including financial assistance to individuals and businesses, tax breaks, and measures to boost employment.
The slowdown in Italy's inflation rate in March may provide some relief to policymakers and businesses, as high inflation can lead to reduced purchasing power and increased costs for both consumers and businesses. However, the increase in prices of unprocessed food, tobacco, and services related to recreation highlights the ongoing challenges facing the Italian economy.
The monthly inflation rate for March was reported to be minus 0.3 percent, suggesting a slight decline in prices compared to the previous month. The Italian government and businesses will need to monitor the situation closely and take steps to address any underlying issues contributing to inflation and to support the country's economic recovery. Overall, the figures suggest that the Italian economy is still on the path to recovery, but there is still much work to be done to ensure sustained growth and stability in the future.
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