Portugal Inflation Rises to 0.6% in July


Consumer prices in Portugal went up 0.6 percent year-on-year in July of 2016, following 0.5 percent increase in the previous month and below market expectations of 0.8 percent. The largest upward pressure came from food and restaurants and hotels while transport and health prices continued to decline. On a monthly basis, prices dropped 0.7 percent.

Year-on-year, prices increased for food and non-alcoholic beverages (+1.65 percent from 1.01 percent in June); restaurants and hotels (+2.62 percent from +2.61 percent in June) and clothing and footwear (+1.32 percent from -0.86 percent in June). In contrast, prices grew at a slower pace for housing and utilities (+0.12 percent from +0.69 percent in June); furnishing (+0.35 percent from +0.69 percent in June); communication (+1.66 percent from +1.75 percent in June); alcoholic beverages and tobacco (+1.77 percent from +1.89 percent in June) and transport prices declined at a faster 2.1 percent (-1.49 percent in June).

Annual core inflation which excludes prices of food and energy rose to 0.8 percent from 0.7 percent in June. 

On a monthly basis, consumer prices fell 0.7 percent, compared to 0.1 percent rise in June and reaching the lowest in six months. Cost of clothing and footwear was the main driver of the slowdown, falling by 12.24 percent while transport prices recorded the highest upward pressure (+1.36 percent).

 Portugal Inflation Rises to 0.6% in July


INE | Yekaterina Guchshina | yekaterina@tradingeconomics.com
8/10/2016 11:21:05 AM