Portugal Inflation Rate Confirmed at 3-Month Low of 1.2%

The annual inflation rate in Portugal eased to 1.2 percent in August 2018 from a 15-month high of 1.6 percent in July, matching the preliminary estimate. It was the lowest inflation rate since May.
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com 9/12/2018 10:40:55 AM
Year-on-year, prices increased at a slower pace for: food & non-alcoholic beverages (0.90 percent vs 1.19 percent in July); restaurants & hotels (1.11 percent vs 4.82 percent); miscellaneous goods & services (0.48 percent 0.65 percent) and alcoholic beverages & tobacco (2.40 percent vs 2.87 percent). In addition, cost continued to fall for clothing & footwear (-2.46 percent vs -2.81 percent) and furniture & household equipment (-0.31 percent vs -0.48 percent).

On the other hand, inflation quickened for: transport (4.00 percent vs 3.98 percent); housing & utilities (2.65 percent vs 2.60 percent), of which rents (2.2 percent vs 2.1 percent); recreation & culture (0.49 percent after prices showed no growth in July) and health (1.22 percent vs 1.19 percent).

Annual core inflation, which excludes energy and unprocessed food products components eased to 0.6 percent, in line with the preliminary figure, from 1.0 percent in the previous month. It was the lowest rate since April.

On a monthly basis, consumer prices went down 0.3 percent as initially estimated, following a 0.6 percent fall in July. The main decreases in monthly consumer price index were recorded for clothing & footwear (-5.6 percent vs -13.0 percent) and restaurants & hotels (-1.8 percent vs 1.4 percent).

The harmonized consumer price index rose by 1.3 percent year-on-year (2.2 percent in July) and decreased by 0.7 percent month-over-month (-0.4 percent in July).

Portugal Inflation Rate Confirmed at 3-Month Low of 1.2%