Italy's government debt reaches record high

According to the country's Central Bank, the debt reached 2.766 trillion euros ($2.812 trillion), the highest figure in history.

The weakening of the euro was one of the factors that contributed to the rise in debt levels, as most of Italy's debt is in European currencies. The dollar and euro began trading on roughly equal terms, with the dollar briefly outpacing the euro in July, the bank said in a report.

The Bank of Italy said high prices were a factor in the rise in public debt.

Higher prices led to higher tax revenues. The bank said tax revenues in the first six months were up 11.9 percent year-on-year, adding an extra 23.2 billion euros ($23.6 billion) to government coffers.

But inflation, along with other factors such as political uncertainty in the country and fears of an economic downturn stemming from the situation around Ukraine, pushed bond yields to their highest level since 2014. As of Tuesday, the yield on Italy's 10-year government bond stood at 3.135 percent, up 1.089 percent year-to-date. Higher bond yields increase government borrowing costs.

The increase in public expenditure is another main factor of the country's increasing debt load.