Portugal Inflation Rate Confirmed at 0.4% in June


The annual inflation rate in Portugal stood at 0.4 percent in June 2019, unchanged from the prior month and matching the initial estimate. It remained at the lowest level since April 2018, as prices slowed mostly for transport and housing & utilities.

Year-on-year, prices slowed mostly for transport (0.9 percent vs 1.7 percent in May), owing to fuels & lubricants (-2.6 percent vs 2 percent); housing & utilities (0.6 percent vs 0.8 percent), led by gas (1.4 percent vs 2.1 percent) and electricity (-3.7 percent vs -3.6 percent); and miscellaneous goods & services (1.6 percent vs 1.9 percent). Also, cost increased less for furnishings (0.3 percent vs 0.6 percent) and alcoholic beverages & tobacco (1.8 percent vs 2.0 percent) and it fell for clothing & footwear (-3.8 percent vs -3.1 percent); communications (-3.8 percent vs -3.4 percent) and recreation & culture (-0.3 percent, after being flat in May). Meantime, inflation remained steady for education (at 1.4 percent) and health (at 1.0 percent).

On the other hand, prices advanced faster for food & non-alcoholic beverages (0.4 percent vs 0.2 percent), namely meat (2.6 percent vs 1.2 percent) and restaurants & hotels (2.2 percent vs 0.1 percent).

Annual core inflation rate, which excludes prices of energy and unprocessed food products, edged up to 0.6 percent in June 2019 from 0.5 percent in the previous month, and in line with an earlier estimate.

On a monthly basis, consumer prices were unchanged, as initially estimated, following a 0.1 percent gain in May. Rises seen in prices of food & non-alcoholic beverages (0.1 percent vs 0.5 percent); health (0.1 percent vs 0.2 percent); recreation & culture (0.2 percent vs -0.9 percent) and restaurants & hotels (2 percent vs 1.1 percent) were offset by lower cost of clothing & footwear (-2 percent vs -0.1 percent); communications (-0.6 percent vs -3.1 percent) and miscellanous goods & services (-0.2 percent vs 0.1 percent).

The harmonized consumer price index rose 0.7 percent year-on-year (vs 0.3 percent in May) and increased 0.4 percent month-over-month (vs 0.3 percent in May).


Portugal Inflation Rate Confirmed at 0.4% in June


INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
7/10/2019 2:10:26 PM