Italy's inflation steady, trade surplus widens

Italy's inflation rate remained steady in July, Italy's national statistics institute (Istat) said Friday, while the country's trade surplus widened in June from the same month a year earlier. In good news for the eurozone's third largest economy, the annual inflation rate held steady in July at 1.2 percent, Istat said, revising up its preliminary estimate of 1.1 percent. Prices were up 0.1 percent compared to June, the institute said. On a 12-month comparison, consumer goods were up 2.0 percent from July 2012. In separate data, Istat said the country's foreign trade surplus widened in June to 3.6 billion euros ($4.8 billion) from 2.8 billion in June 2012. On a monthly basis, exports were up 1.2 percent in June from May, while imports increased 1.6 percent. Recent indicators suggest the recession in Italy -- the longest in the post-war period -- is finally easing. This week Istat said the economy shrank by less than feared in the second quarter of 2013. The economy remains at risk, however, from the volatile political situation following ex-premier Silvio Berlusconi's definitive conviction for tax fraud. The furious reaction from Berlusconi and his People of Freedom party (PDL) to the ruling has raised concerns for the stability of Letta's grand coalition government and the country's economic recovery.