Portugal Inflation Rate in Negative Territory

Portuguese annual inflation rate declined 0.1 percent in February of 2014, down from 0.1 percent in the previous month. Monthly inflation was recorded at -0.3 percent changing from -1.4 percent in January and -0.1 in February of 2013.

The largest downward pressure on the annual rate came from decreases in prices of transports (-1.89 percent), clothing and footwear (-2.26 percent). Increases in prices of housing, water, electricity, gas, other fuels (2.27 percent), alcoholic beverages and tobacco (3.71 percent) led to an opposite effect. 

Annual core inflation rate, excluding energy and unprocessed food products, remained unchanged from the previous month at 0.1 percent.

On a monthly basis, the main downward contribution to the fall came from changes in the prices of clothing. On the opposite side, prices of international flights and house rentals increased. The average value of rents for the whole country increased 1.6 percent. The main increase was observed in the Lisbon region (3.4 percent) and the main price fall was recorded in the Azores region (-3.6 percent).

In February of 2014, the annual harmonized price index fell to -0.1 percent, from 0.1 percent recorded in January, and dropped 0.3 percent on a monthly basis (-1.4 percent and -0.1 percent respectively in the previous month and in February 2013).

Portugal Inflation Rate in Negative Territory

INE | Isabel Felino | isabel.felino@tradingeconomics.com
3/12/2014 1:18:42 PM