Portugal Inflation Rate Steady in July

Portuguese annual inflation rate was recorded at 0.8 percent in July of 2015, the same pace as in the previous month and below market expectations. A slowdown in prices of food and housing was enough to offset an increase in cost of miscellaneous goods and services and higher prices of furnishing and household equipment.
INE | joana.ferreira@tradingeconomics.com 8/12/2015 12:11:37 PM
Year-on-year, prices of food and non-alcoholic beverages increased at a slower 1.5 percent from 2 percent in June. Also, housing and utilities inflation eased to 0.2 percent from 0.6 percent in the previous month. Meanwhile, prices of miscellaneous goods and services were up 0.4 percent, after remaining stable for the last three months; and furnishing and household equipment inflation accelerated to 1.2 percent, compared to 0.8 percent in June.

Additional upward pressure came from: alcoholic beverages and tobacco (+5 percent); communication (+5 percent); restaurants and hotels (+1.4 percent); and education (+0.6 percent). In contrast, prices of clothing and footwear (-2.9 percent), recreation and culture (-0.5 percent) and transportation (-0.4 percent) declined.

Core inflation was recorded at 0.70 percent, up 0.1 p.p. compared to the previous month.

On a monthly basis, consumer prices fell a more-than-expected 0.7 percent, after declining 0.1 percent last month. Prices of clothing and footwear declined 14.1 percent (-1.9 percent in June) and food cost went down by 0.3 percent (+0.1 percent in June).

The harmonized consumer price index increased by 0.7 percent year-on-year while decreased by 0.7 percent compared to June.

Portugal Inflation Rate Steady in July