Portugal Inflation Rate Confirmed at 8-Month Low

The annual inflation rate in Portugal decreased to 0.7 percent in December of 2018 from 0.9 in the previous month and in line with preliminary estimates. It is the lowest inflation rate since April, mainly due to a slowdown in prices of transport and housing & utilities.

Year-on-year, cost slowed sharply for transport (1.5 percent from 3.1 percent in November) and housing and utilities (2.5 percent from 2.7 percent). In addition, inflation was steady for food and non-alcoholic beverages (0.3 percent, the same as in November); health (1 percent) and education (1.2 percent). On the other hand, prices rose faster for alcoholic beverages and tobacco (2.6 percent from 2.2 percent); communication (0.4 percent from 0.1 percent) and miscellaneous goods and services (1.2 percent from 1.1 percent).

Annual core inflation, which excludes energy and unprocessed food products, increased to 0.6 percent in December, above November’s final reading of 0.5 percent and in line with flash estimates.

On a monthly basis, consumer prices went down 0.2 percent in December, following a 0.4 percent drop in the prior month. 

The harmonized consumer price index rose 0.6 percent year-on-year (vs 0.9 percent in November) and decreased by 0.4 percent month-over-month (vs a 1 percent drop in November).

Portugal Inflation Rate Confirmed at 8-Month Low

INE | Agna Gabriel | agna.gabriel@tradingeconomics.com
1/11/2019 11:25:13 AM