Italian real incomes experienced their lowest growth in 29 years, the national statistics institute Istat said in a statement on Tuesday.

In March, hourly wages were 1.2 percent higher than in the same month last year, the lowest growth since 1983, according to the agency.

The annual inflation rate was 3.3 percent, which means the spending power of Italian households dropped by almost 2.1 percent in March, compared to the same month in 2011.

In order to stimulate growth in the recession-hit country, Italy should reduce the tax burden on workers and businesses, Bank of Italy Deputy Director-General Salvatore Rossi was quoted as saying by local media.

"That the tax burden is very high in Italy both by historical and international standards is a situation that endangers the revival of growth, which is the main objective we must ask ourselves,"he said.

Rossi said Italy could balance its budget in 2013 by managing public assets better, and show growth by the end of the year if investor confidence comes back and taxes are lowered.

On Monday, Istat said the consumer confidence index fell to 89.0 points, the lowest level since the institute began calculating the statistics in 1996.

Despite a recent series of poor economic indicators for the Italian economy, Prime Minister Mario Monti expressed recently his confidence on the country's economic fundamentals and budget balance prospects in 2013.