Portugal's consumer price inflation was confirmed at 0.4 percent year-on-year in December 2019, the highest in six months and compared to November's 0.3 percent. Main upward pressure came from transport (1.8 percent vs 0.8 percent), restaurants & hotels (1.9 percent vs 1.6 percent), and recreation & culture (0.7 percent vs 0.6 percent). Meanwhile, inflation slowed for food & non-alcoholic beverages (0.2 percent vs 0.3 percent) and miscellaneous goods & services (1.3 percent vs 1.5 percent). Housing prices were flat (vs -0.3 percent in November) while clothing & footwear costs dropped further (-2.0 percent vs -1.6 percent). Excluding energy and unprocessed food prices, the index rose 0.4 percent, compared to 0.6 percent in the previous month. Considering 2019 full year, the average inflation slowed to 0.3 percent from 1.0 percent in 2018. Inflation Rate in Portugal averaged 8.42 percent from 1961 until 2019, reaching an all time high of 53.90 percent in May of 1977 and a record low of -1.60 percent in June of 2009.
Inflation Rate in Portugal is expected to be 0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Portugal to stand at 1.20 in 12 months time. In the long-term, the Portugal Inflation Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.