Portuguese Inflation Rate Slows in January


In January of 2014, Portuguese annual inflation rate slowed to 0.1 percent from 0.2 percent in the last month of 2013. On a monthly basis, prices fell sharply by 1.4 percent, the lowest rate in almost 38 years, due to lower cost of clothing and flights.

Year-on-year, the largest downward pressure on the overall annual rate came from decreases in the prices of clothing and footwear (-2.63 percent) and transports (-1.38 percent). Increases in the prices of housing, water, electricity, gas and other fuels (2.14 percent) and alcoholic beverages and tobacco (4.26 percent) led to an opposite effect. 

Housing rents increased 3.3 percent. The main increase was observed in the Lisbon region (5.1 percent), while the Madeira region recorded a decrease of 1.9 percent.

The annual core inflation rate, which excludes energy components and unprocessed food products, decreased 0.1 p.p., to 0.1 percent.

On a monthly basis, prices fell 1.4 percent (0.4 percent in December 2013 and -1.2 percent in January 2013), due to lower prices of clothing and national and international flights. The average value of housing rents increased 3.0 percent (0.1 percent in the previous month). The main increase was observed in the Lisbon region (+ 4.2 percent), followed by the Centro region (2.9 percent).

Portuguese Inflation Rate Slows in January


INE | Joana Taborda | joana.taborda@tradingeconomics.com
2/12/2014 11:27:32 AM