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Italians deeply concerned after country's inflation hits 37-year high in 2022

Sunday, 08 January 2023 12:20 AM [ Last Update: Sunday, 08 January 2023 12:20 AM ]

Max Civili

Press TV, Rome

The inflation rate in Italy has been high for a while, breaking record after record. An increasing number of Italians are struggling to make ends meet, fearing that the cost of living pinch could soon turn into pain.

The national bureau of statistics recently announced that prices in the country rose more than eight percent year-on-year in 2022, registering its highest 12-month gain in 37 years.

Italy's annual inflation rate in December dropped to 11.6% , down from 11.8% in November, but the cost of living crisis keeps biting businesses and households hard.

High energy prices, caused by energy supply challenges following the Ukraine-Russia war, constitute the main factor contributing to this surge.

Analysts believe that a combination of high inflation, rising interest rates and a lack of fiscal support will push Italy and other EU economies into recession.

In order to fight high inflation and put prices under control, the European Central Bank has raised interest rates. The move is likely to hamper the European economy further.

Some ministers in the Italian government have strongly criticized the ECB over its aggressive monetary policy that they believe could raise the prospect of recession.

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