Portugal Inflation Rate Confirmed at 3-Month High of 0.9%

Consumer prices in Portugal increased 0.9 percent year-on-year in February of 2019, in line with preliminary figures and above a 0.5 percent rise in January. It is the highest inflation rate in three months, mainly due to rising cost of food and non-alcoholic beverages and transport.

Prices rose faster for food and non-alcoholic beverages (1.3 percent compared to 0.2 percent); transport (2.3 percent compared to 0.7 percent); and miscellaneous goods and services (1.7 percent compared to 1.3 percent). On the other hand, inflation slowed for housing and utilities (0.5 percent compared to 0.6 percent); restaurants and hotels (1.7 percent compared to 2.1 percent); and health (0.8 percent compared to 1.2 percent). Also, inflation was steady for recreation and culture (0.1 percent) and proices fell more for clothing and footwear (-3.3 percent compared to -3.1 percent).

Annual core inflation rate, which excludes prices of energy and unprocessed food products increased to 1 percent from 0.8 percent in January, in line with earlier figures.

On a monthly basis, consumer prices went down 0.2 percent, following a 1.2 percent drop in January and also in line with preliminary figures. Main downward contribution came from clothing and footwear (prices fell 4.6 percent after a 16.7 percent slump in January), namely women's clothing while the biggest upward contribution came from cost of transport (+0.5 percent compared to -0.4 percent), namely diesel.

The harmonized consumer price index rose 0.9 percent year-on-year (vs 0.6 percent in January) and decreased 0.3 percent month-over-month (-1.3 percent in January).

Portugal Inflation Rate Confirmed at 3-Month High of 0.9%

INE | Joana Taborda | joana.taborda@tradingeconomics.com
3/12/2019 11:26:36 AM