November 16, 2007 (LPAC)--The European Central Bank issued a report yesterday claiming that inflation in Euroland is at 2.6%, and that consumers' perception "might have been magnified at the current juncture by the extensive media coverage of [food] price increases in some countries." In other words, prices are increasing, but there is no inflation.

Figures released yesterday by the Italian Central Statistics Institute, showed that in October alone, bread prices increased 10.3%; pasta, 6.4%; milk, 5%; poultry, 7.3%, fruit, 5.3%. If price increases in August and September are added in, Italian consumer associations calculate an average increase of EU400 ($600) for the average family food bill at the end of the year, on top of the increased gasoline bill, mortgage or rental rates, and utility bills.