Portuguese Inflation Rate Revised Down to 6-Month Low

The Portuguese consumer price inflation came in at 1 percent year-on-year in January 2018, below a preliminary reading of 1.1 percent compared with 1.5 percent in the previous month. It was the lowest inflation rate since July last year.

Year-on-year, prices rose at a softer pace for: food and non-alcoholic beverages (1.5 percent vs 2.3 percent in December); transport (3.2 percent vs 3.8 percent); restaurants and hotels (2.5 percent vs 3 percent); and health (0.7 percent vs 1 percent). Meanwhile, inflation picked up for both housing and utilities (1.5 percent vs 1.3 percent) and miscellaneous goods and services (1.2 percent vs 1.1 percent). On the other hand, downward pressure came from: clothing and footwear (-4.7 percent vs -3.4 percent); furnishings, household equipment and routine maintenance of the house (-1 percent vs -0.3 percent); and recreation and culture (-0.2 percent vs 0.1 percent).

Annual core inflation rate, which excludes energy and unprocessed food products, eased to 0.9 percent in January from 1.2 percent in the previous month, also below the flash estimate of 1 percent.

On a monthly basis, consumer prices declined by 1 percent, the biggest drop since January 2016, after showing no growth in December. The decrease was led by a sharp fall in prices of clothing and footwear (-17.4 percent).

The harmonized consumer price index increased by 1.1 percent year-on-year and fell by 1.2 percent from the previous month.

Portuguese Inflation Rate Revised Down to 6-Month Low

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
2/12/2018 11:26:22 AM