Portugal Inflation Rate Falls 0.1% in April

Portuguese consumer prices declined 0.1 percent on the year in April of 2014, slightly up from a 0.4 percent fall in the previous month. Higher prices of housing and tobacco were not enough to offset a drop in food prices.

The largest downward pressure came from prices of food and non-alcoholic beverages (-0.93 percent yoy), while cost of alcoholic beverages and tobacco (2.36 percent) and housing, water, electricity, gas and other fuels (2.1 percent) recorded the highest annual increases. Housing rents rose 4.4 percent year-on-year in April (slightly down from 4.7 percent in March). The main decrease was observed in the Azores region (-2.6 percent), while the Lisbon region recorded an increase of 7.6 percent.

From March to April, consumer prices rose 0.2 percent, down from 1.4 percent in March and mainly due to lower cost of meat, fresh vegetables and fish. In contrast, the main upward pressure came from prices for air travel due to the Easter holidays. 

Annual core inflation rate, which excludes energy and unprocessed food, increased 0.3 p.p. to 0.1 percent, driven by higher transport cost.  

The annual harmonized consumer price index was recorded at -0.1 percent. The monthly rate was 0.3 percent. 

Portugal Inflation Rate Falls 0.1% in April

INE | Joana Taborda | joana.taborda@tradingeconomics.com
5/13/2014 11:32:32 AM