Portuguese Inflation Rate at 8-Month Low in December

Consumer prices in Portugal increased by 0.4 percent year-on-year in December of 2015 easing from a 0.6 percent growth in the previous month, as prices of accommodation and leisure activities rose at a slower pace while food cost showed no growth and transport prices dropped slightly. It was the lowest inflation rate since April of 2015.
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com 1/13/2016 12:51:43 PM
Year-on-year, prices of restaurants and hotels rose by 0.2 percent easing from a 0.5 percent growth in November; and cost of recreation and culture grew at a slower 0.2 percent compared to a 0.8 percent increase in the previous month. Cost of food was flat following nine consecutive months of growth while transport prices fell by 0.1 percent after increasing by 0.4 percent in November.

Additional upward pressure came from: Communication (+4.9 percent); alcoholic beverages and tobacco (+4.3 percent); miscellaneous goods and services (+1.3 percent); and education (+0.9 percent). By contrast, cost of clothing and footwear (-2.3 percent) continued to fall.

The annual core inflation rate, which excludes energy and unprocessed food products components, went down to 0.5 percent from 1 percent in November.

On a monthly basis, consumer prices dropped 0.3 percent, after falling 0.2 percent last month, as prices of clothing and footwear dropped 2.8 percent.

The harmonized consumer price index increased by 0.5 percent year-on-year.

Portuguese Inflation Rate at 8-Month Low in December