ROME, Jan. 5 (Xinhua) -- Italy's inflation rate for 2009 fell to the lowest level in 50 years, the country's leading daily newspaper Corriere della Sera reported on Tuesday.

    According to data issued by the national statistics office Istat, in 2009 inflation rose 0.8 percent, down from a 3.3-percentincrease in 2008, the highest in 12 years.

    Italy in 1959 had a negative inflation rate of -0.4 percent.

    Year-on-year inflation in December rose by 1 percent, while there was a 0.2-percent surge in the consumer price index over November, Istat added.

    The increase in inflation was primarily due to higher prices for transport, tobacco products and insurances.

    For Italian Industry Minister Claudio Scajola, the data were positive. The fact that inflation fell to its lowest level in half a century proves the country's recovery though it also confirms the severity of the recession, he said.

    Another positive fact, added Sacjola, was that consumer purchasing power was not compromised by the crisis and for some Italians it actually strengthened.

    According to the minister, the year-on-year increase in inflation last month "was a sign that spending and economic activity were back on the rise," highlighting that Italy now needed to support growth while keeping prices in check to avoid speculative pressure on key consumer goods.

    But consumer groups are less optimistic, lamenting a sharper fall in purchasing power.

    Codacons association recognized that prices last year had fallen, "but not enough, considering the decline in consumer spending."

    Federconsumatori association said in 2009 household expenditures rose by 240 euros and are expected to further increase by 600 euros this year.

    Italy is slowly recovering from the global economic downturn. The government expects this year's gross domestic product to grow by at least 1 percent.

    The mood in the country is brighter and on Tuesday a national survey showed that Italians' confidence in the recovery has been steadily rising in the last four months.

    Due to the economic revival, most observers expect inflation in Italy to remain in line with that of the 16-nation euro zone: 1.4 percent in 2010 and 2 percent in 2011.

    However, a lack of important socio-economic reforms and an 8-percent unemployment rate are hindering the country's recovery, they say.

Special Report:  Global Financial Crisis