Portuguese Inflation Rate at 14-Month Low

Consumer prices in Portugal increased by 0.3 percent year-on-year in May of 2016, easing from a 0.5 percent growth in the previous month and hitting the smallest gain since March last year. Prices of restaurants and hotels and housing continued to rise while a drop in cost of food, transport and clothing weighed on inflation.
Joana Ferreira | joana.ferreira@tradingeconomics.com 6/9/2016 11:21:49 AM
Year-on-year, prices of restaurants and hotels rose by 2.2 percent accelerating from a 2 percent growth in April; and cost of housing and utilities grew 0.7 percent, the same pace as in the previous month. In contrast, cost of food edged lower 0.1 percent, following a 0.1 percent rise in April; transport prices dropped 1.3 percent after a 0.9 percent decline in April; and cost of clothing and footwear decreased 0.8 percent, after showing no growth in the previous month.

Additional upward pressure came from: Miscellaneous goods and services (+0.5 percent); and recreation and culture (+0.9 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.8 percent.

On a monthly basis, consumer prices rose 0.3 percent, following a 0.4 percent gain last month. While cost of transport rose 1 percent, prices of clothing and footwear dropped 0.6 percent.

The harmonized consumer price index increased by 0.4 percent year-on-year and by 0.4 percent from the previous month.

Portuguese Inflation Rate at 14-Month Low