Italy inflation hits 40-month low , public debt high bus rep

Inflation in Italy sank to a 40-month low while public debt reached an all-time high, according to official figures released Tuesday on the eve of economic forecasts expected to show the eurozone's third-largest economy was mired in recession. Inflation in April fell year-on-year to 1.1 per cent, the lowest level since December 2009, the national statistics office, Istat, said as Italy's moribund economy keeps prices down. In March, inflation stood at 1.6 per cent. On a monthly basis, prices were stable, the Rome-based agency said, adding that the slowing rate of inflation was "mainly due to the drop in energy prices," which decreased by 0.9 per cent compared with April 2012. Separately, the Bank of Italy calculated that public debt had risen to a record 2.035 trillion euros (2.65 trillion dollars) in March, up from 2.018 trillion euros in February, dpa reported.