Citing new year increases in the cost of public transport, car insurance, cinema tickets and notaries, the Federconsumatori group called on the Economy Ministry to punish hikes above the programmed rate of inflation with fines.

"With inflation falling, the hikes are unjustifiable and show that in some areas of our economy the market is cornered," Federconsumatori chief Rosario Trefiletti said.

With the exception of cinema tickets, the government has some influence in determining prices in all other areas in which the consumer lobby reported hefty increases.

In the run-up to the euro's materialization as the everyday currency, the government asked goods retailers and producers to keep price hikes to a minimum on January 1, because they would tarnish the currency's image as a harbinger of low inflation.

In a last-minute move, the government stepped in to block increases in rail ticket prices which it had earlier approved, ignoring the dire financial straits of the national railway company.

The retailers' association promised that when converting prices to euro, shopkeepers would not round them up.

Average city bus and metro tickets cost 30 percent more now that they have been priced at 1 euro, it said.

In addition, a shortage of small euro coinage for change has led many shopkeepers to label goods with nice round euro figures that in most cases involve a higher price, it added.