A customer shops at a market in Rome, Italy, April 2, 2022.(Xinhua/Jin Mamengni)

Higher energy prices stemming from the ongoing conflict between Russia and Ukraine were major factors impacting both the growth and inflation data.

ROME, July 16  -- The Bank of Italy has raised its economic growth estimates for this year, but warned that the estimates could still be reduced dramatically if natural gas imports from Russia were cut off.

The bank on Friday predicted the economy would grow 3.2 percent this year, up from an estimate of 3 percent in its previous estimate from April. The new estimate was a dose of good news in Italy in a context of surging inflation.

On the same day, the National Institute of Statistics (ISTAT) confirmed earlier estimates showing that prices in June increased by 8 percent year-on-year, a new record high, and by 1.2 percent on a monthly basis.

Higher energy prices stemming from the ongoing conflict between Russia and Ukraine were major factors impacting both the growth and inflation data.