Portuguese Inflation Rate Unchanged at 4-Month High

Portuguese consumer price inflation came in at 1.4 percent year-on-year in October 2017, unchanged from the previous month's four-month high and in line with market expectations. An increase in cost of food, transport, accommodation, and miscellaneous goods and services offset a drop in prices of leisure activities, clothing, and furnishings and household equipment.

Year-on-year, prices rose for: Food and non-alcoholic beverages (1.3 percent from 1.1 percent in September); transport (2.6 percent, the same as in September); miscellaneous goods and services (1.4 percent from 1.3 percent); restaurants and hotels (6 percent from 4.5 percent); health (0.8 percent from 0.7 percent); and housing and utilities (1.2 percent from 1.3 percent). Meanwhile, downward pressure came from: Recreation and culture (-0.2 percent from 1.5 percent in September); clothing and footwear (-3.7 percent from -3.4 percent); and furnishings, household equipment and routine maintenance of the house (-0.4 percent from -0.5 percent).

Annual core inflation rate, which excludes energy and unprocessed food products components, stood at 1.3 percent, unchanged from the previous two months.

On a monthly basis, consumer prices rose 0.3 percent after a 0.9 percent jump in September. Biggest upward pressure came from clothing and footwear (2.3 percent from 20.2 percent in September) while prices of food fell (-0.1 percent from 0.1 percent). 

The harmonized consumer price index increased by 1.9 percent year-on-year and by 0.5 percent from the previous month.

Portuguese Inflation Rate Unchanged at 4-Month High

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/13/2017 11:23:46 AM