Portuguese Inflation Rate Rises to 7-Month High

Consumer prices in Portugal increased by 0.7 percent year-on-year in August 2016, following a 0.6 percent growth in the previous month. It was the highest inflation rate since January this year, as prices rose further for restaurants and hotels, housing and food.

Year-on-year, prices of restaurants and hotels rose by 3.3 percent accelerating from a 2.6 percent growth in July; and cost of housing and utilities grew 0.3 percent, compared to a 0.1 percent rise in the previous month; and prices of food and non-alcoholic beverages went up 1.8 percent, the biggest gain since September last year. Additional upward pressure came from: Miscellaneous goods and services (+0.4 percent); and clothing and footwear (+0.8 percent). In contrast, cost fell for transportation (-1.3 percent) and recreation and culture (-0.3 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.6 percent compared to 0.8 percent in the previous month.

On a monthly basis, consumer prices fell 0.2 percent, following a 0.7 percent drop last month. While cost of clothing and footwear declined 6.5 percent, prices of restaurants and hotels climbed 1.5 percent.

The harmonized consumer price index increased by 0.8 percent year-on-year and was unchanged from the previous month.

Portuguese Inflation Rate Rises to 7-Month High

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/12/2016 11:14:54 AM