ROME: Italian economy scaled up 4.6 percent in the second quarter of this year (Q2) compared to the corresponding period a year ago, the government's statistics body, National Statistics Institute (ISTAT)  reported.

Nevertheless, the Second Quarter economic growth rate of 4.6 percent (April to June) was higher than the prior 4.3 percent year-over-year growth projection for the quarter.

Starting with the first quarter of 2021, when the economy started to emerge from the economic shadow created by the coronavirus epidemic, the economy has now seen positive growth for six consecutive quarters.

The economy grew by 3.4 percent over the first six months of the year. The forecast for this year as a whole, 2.8 percent, was released by ISTAT last month in its economic outlook for 2022–2023. Domestic demand increased the growth rate, offsetting a minor decline in exports to foreign nations during the second quarter. However, rising prices countered the good growth rate.

As per ISTAT report released on Friday, prices were 7.9 percent higher in July of this year than they were in July of 2021, which was a little less than the 8.0 percent increase from June but was still 0.4 percent higher than June's levels. It said,  rising energy costs are the primary cause of price increases. Although this increase was less than the 48.7 percent increase between June 2022 and June 2021, the price of energy commodities was 42.9 percent higher in July than it was in July 2021.

Early this year, energy costs started to rise as a result of the ongoing conflict between Russia and Ukraine.

Prices increased 6.7 percent over the first seven months of this year compared to the same time last year. Since the introduction of the euro roughly 24 years ago, this is the greatest inflation rate that Italy has experienced.

Other economic sectors experienced lesser increases: July saw a 4.6 percent increase in prices for leisure, culture, and personal care services, a 9.6 percent increase in prices for processed food, and an 8.9 percent increase in transportation costs.

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