Portugal Inflation Rate Down to 0.2% in April

In April 2013, the annual inflation rate measured by the CPI decreased 0.3 p.p. to 0.2 percent, comparing with the rate observed in the previous month. The CPI 12-month average rate of change decreased from 2.0 percent in March to 1.7 percent in April. The core inflation index, which excludes unprocessed food and energy, was 0.8 percent (1.0 percent in March).

The largest downward pressure on the overall annual rate of change came from changes in prices of transports. In national terms, in April 2013, compared with March 2013, the average value of rents by net area increased 0.2 percent.
The 12-month core inflation rate, which excludes unprocessed food and energy, decreased 0.2 p.p. comparing with the rate observed in March to 0.8 percent in April. The main reductions were recorded in housing, water, electricity, gas and other fuels and transports.
In April, the CPI monthly rate was 0.0 percent (1.7 percent in March 2013 and 0.3 percent in April 2012). This result was mostly due to the contribution of changes in prices of clothing and footwear transports.
In March 2013 the gap between the Portuguese and the Euro-area HICP 12-month average rate was -0.3 p.p.. In April, the Portuguese HICP 12-month average rate is 0.4 p.p. lower than Eurostat's flash estimate for the whole area.

INE | Nuno Fontes | nuno@tradingeconomics.com
5/13/2013 11:06:35 AM