Prices accelerate in 2017. Inflation rate rose to 1.4%

  • ECO News
  • 12 January 2018

Prices in Portugal accelerated last year. The average inflation rate stood at 1.4% in 2017, side by side with an improvement in the economy and in the prices of energy. In 2016, prices rose 0.6%.

Prices in Portugal have accelerated last year, from an average inflation of 0.6% in 2016 and 1.4% in 2017, in line with a good performance of the economy and a surge in the price of energy products.

“The increase of the average rate of change of the CPI between 2016 and 2017 was influenced by the behaviour of core inflation and the positive evolution of the prices of energy products. In 2017, the average rate of change of these aggregates was 1.1% and 3.5% respectively (0.7% and -1.8% in December 2016)”, is disclosed by Statistics Portugal (INE) this Thursday.

INE further discloses that unprocessed food products had a price increase of 1.8% last year. Throughout 2017, there was still another factor that pulled inflation up, according to data from the statistical authority: tourism. Prices in transports, restaurants and hotels (two sectors in the heart of the touristic activity) presented a positive evolution of around 3% and 4%, respectively.

In December, the homologous variation of prices was positive in 1.5%. Taking out energy prices, the annual core inflation stood at 1.2%, above what was registered in November (1.1%).