Portugal Inflation Rate Down to 4-1/2-Year Low

Portugal’ annual inflation rate dropped to -0.37 percent in March of 2014, down from -0.08 percent in the previous month and 0.45 percent a year earlier. It is the lowest level since November of 2009.

Downward pressures came mostly from lower price of transports (-3.08 percent), recreation and culture (-1.48 percent), clothing and footwear (-1.02 percent). In contrast, prices increased for housing, water, electricity, gas and other fuels (2.1 percent), alcoholic beverages and tobacco (2.22 percent).

On a monthly basis, prices edged up 1.4 percent in March of 2014 following a 0.3 percent fall in the previous month, but decelerating from 1.7 percent a year ago. The main upward contribution was higher cost for clothing and footwear due to the introduction of new Spring and Summer collections. On the opposite side, cost fell for fish, diesel, cinemas, theatres, concerts, restaurants and cafés.

In March 2014, compared with February, prices of rents decreased 0.4 percent (from 1.6 percent in the previous month). 

Portugal Inflation Rate Down to 4-1/2-Year Low

INE | Isabel Felino | isabel.felino@tradingeconomics.com
4/11/2014 11:05:50 AM