Inflation moderates six tenths in February to 2.8% due to electricity and food

The advanced data on the Consumer Price Index (CPI) for February published today by the National Institute of Statistics (INE), the main indicator of inflation, will not be confirmed until next March 14.

The CPI cut is mainly attributed to the decrease in electricity prices compared to the increase in February 2023, and to the stability of the prices of food and non-alcoholic beverages, which increased in the same month of the previous year. On the other hand, fuel prices increase compared to the fall in February 2023.

If confirmed, inflation this month will remain at its lowest level since August 2023 (2.6%).

Compared to February, prices rose two tenths to a month-on-month rate of 0.3%.

The core CPI, which does not take into account the more volatile evolution of energy and unprocessed food, moderates two tenths to 3.4%.

The Harmonized Consumer Price Index (HICP), for its part, which is used to compile international statistics, mainly Eurostat, stands at 2.9%, six tenths less than in January. For its part, the estimated monthly variation of the IPCA is 0.4%.

Funcas experts predict that the CPI will move with ups and downs throughout the year due to the step effects in energy products, without a clear downward trend, and they predict an annual average of 3.2%, still above of the 2% target.

The Minister of Economy, Carlos Body, highlights in a statement that inflation "is below 3% for the first time in the last six months" and the underlying inflation "is the lowest in the last two years thanks to the evolution the drop in electricity prices and the stability in food prices".

"We therefore make the moderation of prices compatible with the maintenance of the social shield and support for the most needy households and families," added the head of Economy.