Italy's year-on-year inflation rate rose to 1.3% in January, from 1% in December, with a 0.1% increase in the consumer price index for the month, national statistics bureau Istat. Although Italy's inflation rate in 2009 was the lowest in 50 years, dropping to zero last July, it has been constantly on the rise since then, doubling in November over the previous month, a trend which economists say indicated a recovery for Italy's sagging economy.

Driving up inflation last month, over December, were higher prices for fuels, rail fares and motorway tolls, Istat said. Consumer rights groups on Friday drew attention to the fact that prices continued to climb despite a decline in consumer spending. "What this means is that household purchasing power continues to shrink," Federconsumatori and Adusbef said in a statement. The groups added that "while Istat claims that consumer spending has fallen by 1.6%, we believe it is closer to 1.8-1.9% and as much as 3.2% for those with fixed incomes".

Federconsumatori and Adusbef also said that inflation at 1.3% "will cost the average household 390 euros". With the new year, Istat has revised the list of goods and services it uses to calculate inflation, commonly referred to as its price 'basket', a task carried out at the start of every new year. Added to the basket this year were the costs for caregivers, domestic budget air fares and new high-tech gizmos like smartphones, while making their exit were traditional light bulbs, matches and watch repair.

The total number of minored prices this year rose to 1,206, compared to 1,143 in 2009. According to the consumer group Codacons, Istat should do is make more adjustments to the weight of key goods and services in the basket in order to better calculate real inflation. Istat, Codacons said, "has not at all taken into account the crisis we have been experiencing and which has radically changed the spending habits of the Italian consumer". The group cited as an example the price of auto insurance, which is given less weight than the price of coffee at a bar.