Portugal Inflation Rate at 9-Month Low of 0.5%

The annual inflation rate in Portugal decreased to 0.5 percent in January of 2019 from 0.7 percent in the previous month and slightly above preliminary estimates of 0.4 percent. It is the lowest inflation rate since April, mainly due to lower prices of food, transport and housing & utilities.

Year-on-year, cost slowed for food and non-alcoholic beverages (0.2 percent from 0.3 percent in December); transport (0.7 percent from 1.5 percent); housing and utilities (0.6 percent from 2.5 percent); alcoholic beverages and tobacco (2.4 percent from 2.6 percent) and communication (0.2 percent from 0.4 percent). On the other hand, prices rose faster for miscellaneous goods and services (1.3 percent from 1.2 percent); restaurant and hotels (2.1 percent from 1.5 percent); health (1.2 percent from 1 percent) and education (1.4 percent from 1.2 percent). Meanwhile, prices rebounded for recreation and culture (0.1 percent from -0.1 percent) while continued to decrease for clothing and footwear (-3.1 percent from -3.9 percent). 

Annual core inflation, which excludes energy and unprocessed food products, increased to 0.8 percent in January, above December’s final reading of 0.6 percent and higher than flash estimates of 0.7 percent. 

On a monthly basis, consumer prices dropped 1.2 percent, following a 0.2 percent decline in December and in line with preliminary estimates. 

The harmonized consumer price index rose 0.6 percent year-on-year (the same as in December) and decreased 1.3 percent month-over-month (from a 0.4 percent fall in December).

Portugal Inflation Rate at 9-Month Low of 0.5%

INE | Agna Gabriel | agna.gabriel@tradingeconomics.com
2/12/2019 11:19:53 AM