Portugal Inflation Rate Up to 0.5% in March

In Portugal, the annual inflation rate measured by the CPI increased 0.5 p.p. to 0.5 percent, comparing with the rate observed in the previous month. The CPI 12-month average rate of change moved from 2.2 percent in February to 2.0 percent in March. The core inflation index, which excludes unprocessed food and energy, was 1.0 percent (1.1 percent in February).

In March 2013, the largest downward pressure on the overall annual rate of change came from changes in prices of transports. In national terms, compared with February 2013, the average value of rents by net area decreased 0.2 percent. Non-social rents decreased 0.2 percent and social rents increased 0.3 percent.

In March, the CPI monthly rate was 1.7 percent (-0.1 percent in February 2013 and 1.2 percent in March 2012). This result was mostly due to the contribution of changes in prices of clothing and footwear.
In February 2013, the gap between the Portuguese and the Euro-area HICP 12-month average rate was -0.1 pp. In March, with reference to Eurostat's flash estimate for the whole area, it is estimated to have increased to -0.3 pp.

INE | Nuno Fontes | nuno@tradingeconomics.com
4/10/2013 11:14:40 AM