Portuguese inflation stood at 0.9% in July, in line with what happened in the previous month.
The month of July marked a stabilization in prices in Portugal. According to Statistics Portugal (INE – Instituto Nacional de Estatísticas), consumer prices index (CPI) stood at 0.9% that month. Therefore, inflation continues standing at its lowest this year. The decrease in clothing and shoes’ prices helped make up for the worsening of prices in segments such as housing, water, electricity, gas and other fuels, as well as leisure, recreation and culture.
The stabilization of prices below the 1% threshold takes place after April’s inflation percentage, which went up to 2%, thanks to Easter Hollidays and Tourism. Since then, there has been a consecutive deceleration of consumer price levels, which was particularly strong in June: inflation went from 1.5% in May to 0.9% in June.
As for July’s data, the Portuguese harmonized index of consumer prices — used to compare inflation levels among European countries –, the rate was 1%, in line with the homologous rate from the previous month. However, INE highlights this rate stands 0.3 percentage points below Eurostat’s estimate for the Euro Area, but with a stable difference between both estimates.
INE highlights that, per expense categories, the cut in shoe and clothes prices, which went back 2.5% in July, in an homologous comparison. In the previous month, the rate had also decreased 1.6%. It should be highlighted that those decreases coincide with store sales’ period. Statistics Portugal also highlight the deceleration in transportation prices, which increased 1.1%, below the 1.5% rate registered in June.
On the other hand, INE highlights the role of the increase in the increase in homologous inflation rates in the categories of housing, water, electricity, gas and other fuels. But also in the leisure, recreation and culture categories. In those segments, inflation accelerated 0.5% and 2.5%, respectively. Those percentages can be compared to the month of June, with a 0.2% in the first segment, and a 2.1% increase in the second segment.