Portugal: Harmonized inflation decreases in January
Latest reading: Harmonized inflation slowed to 2.7% in January from December’s 3.1%, remaining above both the ECB’s 2.0% target and the Euro area average of 2.5%. The moderation reflected a fading impact of VAT exemptions and an energy price hike introduced last year. Looking at the details of the release, price pressures for food and transport eased sharply, outweighing a faster rise in hospitality costs.
Still, the trend was unchanged, with annual average harmonized inflation coming in at December’s 2.7% in January. Meanwhile, consumer price inflation fell to 2.5% in January from December’s 3.0%.
Lastly, harmonized consumer prices dropped 0.56% in January over the previous month, which was below the 0.28% fall recorded in December.