Portugal: Inflation rises to highest level in more than two years
January 12, 2011
In December, consumer prices rose 0.3% over the previous month, above the 0.2% increase recorded in November and the 0.1% rise tallied in December 2009. As a result, annual inflation inched up to 2.5% in December (November: +2.3% year-on-year), which represents the highest rate of inflation since October 2008. The monthly price rise was driven by higher transportation costs (+2.2% month-on-month), as well as by higher prices for alcoholic beverages and tobacco (+0.9% mom). These price increases were partially offset by lower prices for clothing and footwear (-0.9% mom) and for health (-2.0% mom). Meanwhile, annual core inflation, which does not include the price of unprocessed food and energy, dropped from 1.2% in November to 1.0% in December. Annual average HICP inflation (based on the harmonised index of consumer prices) rose for the 10th consecutive month, inching up from 1.2% in November to 1.4% in December, the highest level since May 2009.