Portugal May Inflation Rate Slows More than Estimated


The annual inflation rate in Portugal fell to 0.4 percent in May 2019 from 0.8 percent in the previous month and compared to an initial estimate of 0.5 percent. It is the lowest inflation rate since April last year, as prices rose much less for transport and restaurants & hotels. In contrast, cost rebounded slightly for food & non-alcoholic beverages.

Inflation slowed for transport (1.7 percent vs 2.7 percent in April), amid the significant reduction in prices for public transport monthly passes (-8.4 percent vs -7.4 percent) and slower rises in those of fuels (2 percent vs 3.9 percent) and cars acquisition (4.1 percent vs 4.8 percent); restaurants & hotels (0.1 percent vs 1.9 percent), driven by accomodation services (-4.7 percent vs 2.8 percent); housing & utilities (0.8 percent vs 0.9 percent) and alcoholic beverages & tobacco (2 percent vs 2.2 percent). In addition, cost fell for communications (-3.4 percent vs -0.3 percent) and clothing & footwear (-3.1 percent vs -3 percent); while it was unchanged for recreation & culture (vs 0.7 percent in April).

In contrast, prices rebounded slightly for food & non-alcoholic beverages (0.2 percent vs -0.2 percent) and furnishings (0.6 percent vs -0.2 percent). Also, inflation quickened for miscellaneous goods & services (1.9 percent vs 1.8 percent) and health (1 percent vs 0.7 percent).

Annual core inflation rate, which excludes prices of energy and unprocessed food products, eased to 0.5 percent in May 2019 from 0.8 percent in April and below an earlier figure of 0.6 percent.

On a monthly basis, consumer prices went up 0.1 percent, following a 0.6 percent increase in the previous month and matching the initial estimate. Prices slowed sharply for restaurants & hotels (1.1 percent vs 2.6 percent) while they fell for transport (-0.4 percent vs 1.2 percent); communications (-3.1 percent, after no growth in April); recreation & culture (-0.9 percent vs 1.3 percent) and clothing & footwear (-0.1 percent vs 0.8 percent). On the other hand, cost rebounded for food & non-alcoholic beverages (0.5 percent vs -0.3 percent).

The harmonized consumer price index rose 0.3 percent year-on-year (vs 0.9 percent in April) and increased 0.3 percent month-over-month (vs 1 percent in April).

Portugal May Inflation Rate Slows More than Estimated


INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
6/14/2019 11:04:18 AM