Portuguese Inflation Rate Drops to 0.6% in October

Consumer prices in Portugal increased by 0.6 percent year-on-year in October, easing from a 0.9 percent growth in September of 2015. It was the lowest level since April this year, as prices of food grew at a slower pace while cost of furnishings and household equipment fell for the first time in 13 months.
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com 11/11/2015 11:31:58 AM
Year-on-year, prices of food and non-alcoholic beverages increased by 1.3 percent (from +2 percent in September) while cost of furnishings and household equipment went down by 0.1 percent (from +1.2 percent). 

Additional upward pressure came from: Communication (+4.8 percent); alcoholic beverages and tobacco (+3.9 percent); miscellaneous goods and services (+1.6 percent); and restaurants and hotels (+1 percent). By contrast, prices of transportation (-0.9 percent); clothing and footwear (-0.9 percent); recreation and culture (-0.5 percent); and housing and utilities (-0.3 percent) continued to fall.

The annual core inflation rate, which excludes energy and unprocessed food products, was recorded at 0.9 percent (+1.1 percent in the previous month).

On a monthly basis, consumer prices rose by 0.1 percent, after increasing 0.8 percent last month, as cost of clothing and footwear rose at a much slower pace (+3.2 percent from +24.1 percent in the previous month) while transport prices (-1.2 percent from -3.3 percent) continued to drag the inflation down.

The harmonized consumer price index increased by 0.7 percent year-on-year while declined by 0.2 percent compared to September.

Portuguese Inflation Rate Drops to 0.6% in October