The largest downward pressure in July of 2014 came from drop in prices of clothing and footwear (-7.45 percent from -1.45 percent) caused by seasonal sales followed by lower cost of food and non-alcoholic beverages (-3.05 percent yoy from -2.53 in June). Price increases were reported for housing, water, electricity, gas and other fuels (2.15 percent in July of 2014) and alcoholic beverages and tobacco (3.11 percent).
On a monthly basis, the CPI decreased to -0.7 percent (0.1 percent in June and -0.2 percent a year earlier), mostly due to changes in the prices of clothing and footwear. On the opposite side, increases were observed in the prices of transports.
In July of 2014, the core inflation (excluding energy and unprocessed food) was -0.4 percent year-on-year, 0.4 percentage point lower than the rate observed in the previous month.
The Harmonized Index of Consumer Prices annual rate of change was -0.7 percent in July of 2014 (-0.2 percent in June) and the monthly rate was -0.6 percent (0.1 percent in the previous month and -0.2 percent in June of 2013).
The average value of rents by net area for the whole country remained stable on a monthly basis, after increasing 0.1 percent in the previous month. The main decrease was observed in the Madeira region (-0.3 percent) and the largest increase was recorded in the Algarve region (+0.2 percent).