Portuguese Inflation Rate Steady at 0.6% in November

Consumer prices in Portugal increased by 0.6 percent year-on-year in November, the same pace as in October and staying at its lowest level since April this year. While prices of transport and leisure activities increased after dropping in the previous months, a slowdown in cost of food and accommodation held back the increase.
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com 12/11/2015 11:47:48 AM
Year-on-year, transport prices rose by 0.4 percent (-0.9 percent in October), following six months of consecutive declines; and cost of recreation and culture grew for the first time in more than two years by 0.8 percent. However, the increase was partially offset by a slowdown in prices of food and non-alcoholic beverages (+0.4 percent from +1.3 percent in October) and in prices of restaurants and hotels (+0.5 percent from +1 percent in October).

Additional upward pressure came from: Communication (+4.7 percent); alcoholic beverages and tobacco (+4.3 percent); miscellaneous goods and services (+1.7 percent); and education (+1 percent). By contrast, cost of clothing and footwear (-1.7 percent); and housing and utilities (-0.2 percent) continued to fall.

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 1 percent (+0.9 percent in October).

On a monthly basis, consumer prices dropped 0.2 percent, after increasing 0.1 percent last month, as cost of food and non-alcoholic beverages fell 0.8 percent (+0.2 percent in the previous month) and prices of clothing and footwear went down 0.1 percent (+3.2 percent in October), dragging the inflation down.

The harmonized consumer price index increased by 0.6 percent year-on-year.

Portuguese Inflation Rate Steady at 0.6% in November