Portugal Deflation Slows

Portuguese consumer prices fell 0.2 percent year-on-year in February, slowing from a 0.4 percent drop in the previous month. Although transport cost fell at a slower pace, prices of clothing and footwear declined further due to the discount period.

The largest downward pressure came from transport prices (-2.8 percent in February from -4.2 percent in January), mainly due to fuels and lubricants. Prices of clothing and footwear dropped 1.8 percent (-1.5 percent in the previous month) and cost of recreation and culture decreased at a faster 1.5 percent (-1.3 percent in January).

In contrast, upward pressures came from prices of restaurants and hotels (1.8 percent from 1.3 percent in January) and alcoholic beverages and tobacco (3.2 percent from 3.1 percent).

On a monthly basis, consumer prices fell 0.1 percent in February, after declining 1.4 percent in January. The highest downward pressure came from clothing and footwear (-5.2 percent) due to the regular discount period while transport rebounded from last month’s fall and rose 1.9 percent. 

The harmonized index fell 0.1 percent on a yearly basis and was flat compared with the previous month. 

Portugal Deflation Slows

INE | Joana Taborda | joana.taborda@tradingeconomics.com
3/11/2015 11:31:45 AM