Portugal Inflation Rate Edges Up to 0.5% in April

Consumer prices in Portugal increased 0.5 percent year-on-year in April of 2016 following a 0.4 percent rise in the previous month. The inflation rate accelerated for the first time in three months as cost of food and non-alcoholic beverages recovered and transport prices fell at a slower pace. However, the core index which excludes food and energy slowed to its lowest so far this year.

Year-on-year, prices of food and non-alcoholic beverages increased 0.1 percent, following a 0.7 percent decline in March and posting the first rise in three months. In addition, prices of housing and utilities (0.62 percent from 0.69 percent in March) and recreation and culture (1.99 percent from 1.77 percent in March) increased at a faster pace and transport prices fell less (-0.9 percent, following a 1.4 percent drop in the previous month). In contrast, inflation for miscellaneous goods and services (0.43 percent from 0.9 percent in March) and alcoholic beverages and tobacco (2.41 percent from 4.38 percent in March) slowed while health prices fell at a faster 0.92 percent (-0.16 percent in March).

On a monthly basis, the inflation rate slowed to 0.4 percent from a 26-year high of 1.9 percent in March. Main downward pressure came from prices of medical services, domestic flights, holidays, house cleaning and maintenance products.

Excluding food and energy, the core index went up 0.8 percent year-on-year, easing from a 1 percent increase in the previous month.

Portugal Inflation Rate Edges Up to 0.5% in April

INE | Francisco Caeiro | francisco.caeiro@tradingeconomics.com
5/11/2016 12:28:06 PM