The Italian economy performed better than forecast in the second quarter of 2021, with GDP increasing by 2.7% with respect to the previous three months, according to preliminary seasonally adjusted and calendar-adjusted data released by ISTAT.

The national statistics agency said GDP was up by 17.3% with respect to the second quarter of 2020, when Italy was in the grip of the first wave of the pandemic.

Italy’s annual rate of inflation was also up to 1.8% in July, from 1.3% in June. The national statistics agency said that the rise was mainly due to increases in the prices of regulated energy products.