Portugal Deflation Confirmed for 2nd Month

Portugal's consumer prices fell 0.1 percent from a year earlier in August 2019, unrevised from the preliminary estimate and following a 0.3 percent decline in the previous month.
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com 9/11/2019 10:38:57 AM
Housing, water, electricity & gas costs fell for the first time since June 2017 (-0.1 percent vs flat reading in July) while clothing & footwear prices dropped for the 36th consecutive month (-5.1 percent vs -5.8 percent). In addition, food & non-alcoholic beverages prices were flat (vs -0.1 percent in July) and transport inflation slowed to 0.1 percent from 0.5 percent, led by a decline in fuel costs (-3.3 percent vs -2.1 percent).

On the other hand, there was a rebound in prices of restaurants & hotels (0.6 percent vs -1.5 percent) and recreation & culture (0.4 percent vs -0.1 percent), and a pick up in miscellaneous goods & services inflation (1.5 percent vs 1.2 percent).

Core consumer prices, which exclude prices of energy and unprocessed food products, rose 0.2 percent from a year earlier in August, reversing a 0.1 percent fall in the previous month.

On a monthly basis, consumer prices edged down 0.1 percent, after dropping 1.3 percent in July.

The harmonized consumer price index declined by 0.1 percent year-on-year (vs -0.7 percent in July) and by 0.1 percent from a month earlier (vs -1.7 percent in July).

Portugal Deflation Confirmed for 2nd Month