Portugal Inflation Rate Hits 1-Year High in October

Consumer prices in Portugal increased by 0.9 percent year-on-year in October 2016, accelerating from a 0.6 percent growth in September and in line with market expectations. It was the highest inflation rate since September last year, as transport prices rose for the first time in eleven months.

Year-on-year, prices of transportation climbed 0.9 percent, the first rise since November 2015, following a 0.3 percent drop in September. Additional upward pressure came from: Food and non-alcoholic beverages (+0.5 percent from +1 percent the previous month); miscellaneous goods and services (+0.1 percent from +0.4 percent); housing and utilities (+0.2 percent from -0.1 percent); restaurants and hotels (+4.2 percent from +3.4 percent); and recreation and culture (+2.6 percent from +0.8 percent). In contrast, cost fell for clothing and footwear (-1.4 percent from -0.8 percent in September) and health (-0.6 percent, the same as in the previous month).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.7 percent compared to 0.5 percent in the previous month.

On a monthly basis, consumer prices advanced 0.3 percent, following a 0.7 percent gain last month and above market consensus of 0.1 percent rise.

The harmonized consumer price index increased by 1.1 percent year-on-year and rose 0.2 percent from the previous month.

Portugal Inflation Rate Hits 1-Year High in October

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/10/2016 11:28:09 AM