Portugal Inflation Rate at -0.4%

Portuguese consumer prices fell for the fourth straight month by an annual 0.4 percent in May of 2014, following a 0.1 percent drop in the previous month, driven by lower food cost.

The largest downward pressure on the overall annual rate came from decreases in prices of food and non-alcoholic beverages. Increases in cost of housing, water, electricity, gas and other fuels and alcoholic beverages and tobacco led to an opposite effect. 

The annual core inflation rate, which excludes energy and unprocessed food, decreased 0.1 p.p. to 0.0 percent.

On a monthly basis, the inflation fell to -0.1 percent (0.2 percent in April). The main downward contribution came from prices of transports, namely lower cost of air travel after the Easter holiday season. On the opposite side, prices of restaurants and hotels increased, mainly due to accommodation services. 

In May, the harmonized CPI decreased to an annual -0.3 percent (-0.1 percent in April). The monthly rate was 0.1 percent (0.3 percent in the previous month). 

Portugal Inflation Rate at -0.4%

INE | Joana Taborda | joana.taborda@tradingeconomics.com
6/12/2014 11:28:05 AM