Portugal: Inflation rises in October
November 11, 2010
In October, consumer prices rose 0.4% over the previous month, which followed on a 0.2% increase recorded in September. The monthly price increase mainly reflected higher prices for clothing and footwear (+4.0% month-on-month) and for education (+1.9% mom). These price increases were partially offset by lower prices for transportation (-0.1% mom) as well as for recreation and culture (-0.3% mom). Annual inflation stepped up from 2.0% in September to 2.3% in October, which represents the highest rate of inflation since October 2008. Meanwhile, annual core inflation, which does not include prices of unprocessed food and energy, jumped from 0.6% in September to 1.0% in October. Annual average HICP inflation (based on the harmonised index of consumer prices) rose from 0.6% in September to 0.9% in October, which represented the eighth consecutive monthly increase. Consensus Forecast panellists expect harmonised inflation to average 1.3% this year, which is up 0.1 percentage points from last month's forecast. For 2011, panellists expect inflation to average 1.5%.