Portuguese Inflation Rate Confirmed at 15-Month Low

Portuguese consumer prices increased by 0.6 percent year-on-year in February 2018, unrevised from the preliminary estimate and following a 1 percent gain in the previous month. It was the lowest inflation rate since November 2016.

Year-on-year, prices rose at a softer pace for: food and non-alcoholic beverages (0.5 percent vs 1.5 percent in January); transport (1.0 percent vs 3.2 percent); miscellaneous goods and services (1.0 percent vs 1.2 percent); and restaurants and hotels (2.4 percent vs 2.5 percent). Meanwhile, housing and utilities inflation picked up to 1.7 percent from 1.5 percent in January. On the other hand, downward pressure came from: clothing and footwear (-2.4 percent vs -4.7 percent); and recreation and culture (-0.1 percent vs -0.2 percent).

Annual core inflation rate, which excludes energy and unprocessed food products, eased to 0.6 percent in February from 0.9 percent in the previous month.

On a monthly basis, consumer prices declined by 0.7 percent in February after a 1 percent drop in January. The decrease was led by a sharp fall in prices of clothing and footwear (-4.5 percent).

The harmonized consumer price index increased by 0.7 percent year-on-year and fell by 0.6 percent from the previous month.

Portuguese Inflation Rate Confirmed at 15-Month Low

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
3/12/2018 11:18:04 AM