Portugal Inflation Rate Slows to 0.6% YoY in September

Consumer prices in Portugal increased by 0.6 percent year-on-year in September 2016, easing slightly from a seven-month high of 0.7 percent in August and missing market expectations of 0.8 percent growth. Cost of food rose at a slower pace while a drop in housing prices dragged inflation down. On a monthly basis, consumer prices rose sharply by 0.7 percent after falling by 0.2 percent in August.

Year-on-year, prices of food and non-alcoholic beverages rose by 1 percent, slowing from a 1.8 percent growth in the previous month. Additional upward pressure came from: Miscellaneous goods and services (+0.4 percent); restaurants and hotels (+3.4 percent); and recreation and culture (+0.8 percent). In contrast, cost of housing and utilities dropped 0.1 percent (+0.3 percent in August). Prices also fell for transportation (-0.3 percent) and clothing and footwear (-0.8 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.5 percent compared to 0.6 percent in the previous month.

On a monthly basis, consumer prices advanced 0.7 percent, following a 0.2 percent drop last month, as cost of clothing and footwear jumped 22.1 percent.

The harmonized consumer price index increased by 0.7 percent year-on-year and rose 0.7 percent from the previous month.

 Portugal Inflation Rate Slows to 0.6% YoY in September

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/12/2016 10:20:48 AM