Wednesday September 11 2019
Portugal Deflation Confirmed for 2nd Month
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portugal's consumer prices fell 0.1 percent from a year earlier in August 2019, unrevised from the preliminary estimate and following a 0.3 percent decline in the previous month.

Housing, water, electricity & gas costs fell for the first time since June 2017 (-0.1 percent vs flat reading in July) while clothing & footwear prices dropped for the 36th consecutive month (-5.1 percent vs -5.8 percent). In addition, food & non-alcoholic beverages prices were flat (vs -0.1 percent in July) and transport inflation slowed to 0.1 percent from 0.5 percent, led by a decline in fuel costs (-3.3 percent vs -2.1 percent).

On the other hand, there was a rebound in prices of restaurants & hotels (0.6 percent vs -1.5 percent) and recreation & culture (0.4 percent vs -0.1 percent), and a pick up in miscellaneous goods & services inflation (1.5 percent vs 1.2 percent).

Core consumer prices, which exclude prices of energy and unprocessed food products, rose 0.2 percent from a year earlier in August, reversing a 0.1 percent fall in the previous month.

On a monthly basis, consumer prices edged down 0.1 percent, after dropping 1.3 percent in July.

The harmonized consumer price index declined by 0.1 percent year-on-year (vs -0.7 percent in July) and by 0.1 percent from a month earlier (vs -1.7 percent in July).




Friday August 30 2019
Portugal Q2 GDP Growth Confirmed at 0.5%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portugal's quarterly economic growth was confirmed at 0.5 percent in the second quarter of 2019, the same as in the previous three-month period.

Net external demand contributed positively to the GDP growth as exports rose 0.7 percent (vs 3.2 percent in Q1) while imports slumped 2.1 percent (vs 4.7 percent in Q1). In addition, government spending edged up 0.1 percent, the same pace as in the previous quarter.

By contrast, household expenditure shrank 0.3 percent (vs 0.2 percent in Q1), due to lower consumption of non durable goods and services (-0.7 percent vs 0.6 percent). Still, there were increases in consumption of food (0.4 percent vs -0.1 percent) and durable goods (1.2 percent vs -2.2 percent).

Also, fixed investment contracted 2.4 percent (vs 8.4 percent in Q1) due to lower spending on other machinery and equipment including weapon systems (-4.9 percent vs 13.0 percent) and construction (-3.6 percent vs 10.7 percent); while rises were seen in transport equipment spending (5.6 percent vs -0.6 percent) and intellectual property products investment (1.8 percent vs -0.6 percent).

Year-on-year, the economy grew 1.8 percent in the second quarter, also unrevised from the preliminary estimate and matching the expansion recorded in the previous period. Domestic demand was the main driver of growth while net exports contributed negatively to the GDP.




Friday August 30 2019
Portugal Consumer Prices Fall for 2nd Straight Month
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

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.


Wednesday August 14 2019
Portugal Economy Grows 0.5% in Q2
INE | Rafael Gonzalez | rafael.gonzalez@tradingeconomics.com

Portugal's gross domestic product grew 0.5 percent on quarter in the three months to June of 2019, the same pace as in the previous period, the preliminary estimate showed. It remained the strongest growth rate since the second quarter of 2018.

The contribution of net external demand was positive, after being negative in the previous quarter, while domestic demand were a drag on growth.

Year-on-year, the economy advanced 1.8 percent in the second quarter of 2019, the same pace as in the previous period. The contribution of domestic demand decreased, reflecting the deceleration of final consumption expenditure and Investment. Meantime, net trade’s contribution was less negative than in the last quarter, with imports rising less than exports.


Monday August 12 2019
Portugal Falls into Deflation for 1st Time since 2015
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Portugal went down 0.3 percent from a year earlier in July 2019, compared to a 0.4 percent rise in the previous month and matching the flash estimate. It was the first month of deflation since February 2015, mainly due to prices of restaurants & hotels, clothing & footwear and housing & utilities.

Year-on-year, decreases in prices were seen for restaurants & hotels (-1.5 percent vs 2.2 percent in June); clothing & footwear (-5.8 percent vs -3.8 percent), due to a more intense end of season discounts compared to 2018; food & non-alcoholic beverages (-0.1 percent vs 0.4 percent); furnishings (-0.2 percent vs 0.3 percent); recreation & culture (-0.1 percent vs -0.3 percent) and communications (-4 percent vs -3.8 percent). In addition, cost was flat for housing & utilities (vs 0.6 percent), amid a decrease in the VAT rates for electricity and natural gas; and slowed for transport (0.5 percent vs 0.9 percent).

Core consumer prices, which excludes prices of energy and unprocessed food products edged down 0.1 percent from a year earlier, compared to a 0.6 percent gain in the prior month and matching the preliminary estimate. It was the first drop in core consumer prices since July 2014.

On a monthly basis, consumer prices fell 1.3 percent, as initially estimated, after being flat in the preceding month.

The harmonized consumer price index declined 0.7 percent year-on-year (vs 0.7 percent in June) and went down 1.7 percent month-over-month (vs 0.4 percent in June).


Wednesday July 31 2019
Portugal Consumer Prices Fall for 1st Time Since 2015
INE | Agna Gabriel | agna.gabriel@tradingeconomics.com

Consumer prices in Portugal decreased 0.3 percent year-on-year in July of 2019, down from a 0.4 percent rise in the previous month, preliminary estimates showed. It was the first fall in consumer prices since February of 2015, as energy cost is expected to drop further while unprocessed food should rise at a softer pace, according to flash estimates.

Prices are seen decreasing faster for energy (-2.8 percent from -2.5 percent) while those of unprocessed food should increase 0.2 percent, easing from a 1 percent. 

Core consumer prices, which excludes prices of energy and unprocessed food products are expected to edge down 0.1 percent from a year earlier, compared to a 0.6 percent gain in the prior month.

On a monthly basis, consumer prices are set to slump 1.3 percent, after showing no growth in June.

Harmonized consumer prices likely declined 0.7 percent year-on-year, after rising 0.7 percent in June and are seen dropping 1.7 percent month-over-month after a 0.4 percent gain in June.


Wednesday July 10 2019
Portugal Inflation Rate Confirmed at 0.4% in June
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

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).



Friday June 28 2019
Portugal Inflation Rate Steady at 0.4% in June
INE | Agna Gabriel | agna.gabriel@tradingeconomics.com

The annual inflation rate in Portugal came in at 0.4 percent in June of 2019, unchanged from the previous month and remaining the lowest level since April of 2018, preliminary estimates showed. Energy cost is seen falling while prices of unprocessed food should rise further, preliminary estimates showed.

Prices must fell for energy (-2.4 percent from a flat reading in May) while those of unprocessed food (1 percent from 0.4 percent) are seen rising slightly faster.

Annual core inflation rate, which excludes prices of energy and unprocessed food products is expected to advance to 0.6 percent in June from 0.5 percent in the prior month.

On a monthly basis, consumer prices are set to be flat, following a 0.1 percent gain in May.

Harmonized consumer prices likely increased 0.7 percent year-on-year, above 0.3 percent in May and are seen rising 0.4 percent month-over-month after a 0.3 percent gain in May.


Friday June 14 2019
Portugal May Inflation Rate Slows More than Estimated
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Portugal fell to 0.4 percent in May 2019 from 0.8 percent in the previous month and compared to an initial estimate of 0.5 percent. It is the lowest inflation rate since April last year, as prices rose much less for transport and restaurants & hotels. In contrast, cost rebounded slightly for food & non-alcoholic beverages.

Inflation slowed for transport (1.7 percent vs 2.7 percent in April), amid the significant reduction in prices for public transport monthly passes (-8.4 percent vs -7.4 percent) and slower rises in those of fuels (2 percent vs 3.9 percent) and cars acquisition (4.1 percent vs 4.8 percent); restaurants & hotels (0.1 percent vs 1.9 percent), driven by accomodation services (-4.7 percent vs 2.8 percent); housing & utilities (0.8 percent vs 0.9 percent) and alcoholic beverages & tobacco (2 percent vs 2.2 percent). In addition, cost fell for communications (-3.4 percent vs -0.3 percent) and clothing & footwear (-3.1 percent vs -3 percent); while it was unchanged for recreation & culture (vs 0.7 percent in April).

In contrast, prices rebounded slightly for food & non-alcoholic beverages (0.2 percent vs -0.2 percent) and furnishings (0.6 percent vs -0.2 percent). Also, inflation quickened for miscellaneous goods & services (1.9 percent vs 1.8 percent) and health (1 percent vs 0.7 percent).

Annual core inflation rate, which excludes prices of energy and unprocessed food products, eased to 0.5 percent in May 2019 from 0.8 percent in April and below an earlier figure of 0.6 percent.

On a monthly basis, consumer prices went up 0.1 percent, following a 0.6 percent increase in the previous month and matching the initial estimate. Prices slowed sharply for restaurants & hotels (1.1 percent vs 2.6 percent) while they fell for transport (-0.4 percent vs 1.2 percent); communications (-3.1 percent, after no growth in April); recreation & culture (-0.9 percent vs 1.3 percent) and clothing & footwear (-0.1 percent vs 0.8 percent). On the other hand, cost rebounded for food & non-alcoholic beverages (0.5 percent vs -0.3 percent).

The harmonized consumer price index rose 0.3 percent year-on-year (vs 0.9 percent in April) and increased 0.3 percent month-over-month (vs 1 percent in April).


Friday May 31 2019
Portugal Q1 GDP Growth Confirmed at 0.5%
INE | Agna Gabriel | agna.gabriel@tradingeconomics.com

The Portuguese quarterly economic growth was confirmed at 0.5 percent in the first quarter of 2019, slightly above the previous period's figure of 0.4 percent and in line with preliminary estimates. It is the strongest growth rate since the second quarter of 2018.

Fixed investment jumped 10.4 percent in the first quarter, recovering from a 0.3 percent fall in the previous three-month period, due to higher spending on other machinery and equipment including weapon systems (14.5 percent vs -3 percent) and construction (9.7 percent from 2 percent). By contrast, decreases were seen in intellectual property products investment (-0.6 percent vs 2.6 percent) and transport equipment (-0.7 percent from -2.6 percent).

Also, household expenditure increased 0.3 percent (vs 1.3 percent), as consumption slowed for non-durable goods and services (0.8 percent vs 1.4 percent) and food and beverages (0.1 percent vs 0.7 percent) while it drop for durable goods (-2.1 percent vs 1.8 percent); and government spending went up 0.1 percent, unchanged from the previous period. 

Meanwhile, net external demand also contributed negatively to the GDP as imports surged 6.0 percent (vs 2.3 percent in Q4) and exports increased at a slower 2.9 percent (vs 1.6 percent in Q4).

Year-on-year, the economy grew 1.8 percent in the first quarter, also unrevised from the preliminary estimate and above the 1.7 percent expansion recorded in the prior period. Domestic demand was the main driver of growth while net exports contributed negatively to the GDP.