ROME: The official statistics agency for Italy has noted that the ongoing turmoil in Ukraine has continued to negatively impact the country's economic condition.
In its monthly assessment on economic developments, the National Institute of Statistics (ISTAT) stated that there was "high uncertainty due to the conflict between Russia and Ukraine," along with inflationary pressure and a change in monetary policy in the euro zone, as per media reports citing Xinhua. The Ukraine issue is thought to have contributed to an increase in the energy crisis, which has had a ripple impact on other areas of the economy, such as transportation and industrial production.
The institution also took note of the European Central Bank's declarations that it will hike interest rates this month and in September, and that it would at least temporarily stop providing economic assistance for the issuance of national bonds.
National Institute of Statistics reported that although the post-pandemic recovery phase of its seasonally adjusted index of industrial production, which began in January, was "interrupted" in May, it was still above levels from 2021. Consumer actions in the midst of a poor labour market were "deteriorating" household confidence, it claimed.
As per National Statistics, price increases in June demonstrated "a new general acceleration across all components," and even if the gap between Italy's inflation rate and the euro zone's average was closing, it was still negative.
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