Portugal Consumer Prices Fall for 2nd Straight Month

Consumer prices in Portugal decreased 0.1 percent year-on-year in August of 2019, following a 0.3 percent fall in the prior month, preliminary estimates showed. It is the second consecutive month of deflation, on the back of larger reductions in fuel prices, according to flash estimates.

Prices are expected to fall faster for energy (-3.5 percent vs -2.8 percent in July), due to fuels while those of unprocessed food should advance further (0.5 percent vs 0.3 percent).

Core consumer prices, which excludes prices of energy and unprocessed food products are estimated to edged down 0.1 percent from a year earlier, compared to a 0.2 percent rise in July.

On a monthly basis, consumer prices are set to drop 0.1 percent, after declining 1.3 percent in the previous month.

Harmonized consumer prices likely decreased 0.1 percent year-on-year, after falling 0.7 percent in the previous month; whereas went down 0.1 percent month-over-month, following a 1.7 percent decline in July.

Portugal Consumer Prices Fall for 2nd Straight Month

INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
8/30/2019 9:05:59 AM