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Inflation continued to fall in Portugal, settling in December at 1.4% year-on-year, thanks to a slowdown in food prices, according to a first estimate published Friday by the National Institute of Statistics (INE) . The statistics office also estimates inflation for the whole of 2023 at 4.3%, compared to 7.8% in 2022.
Inflation fell for the fourth consecutive month. Last month, it was revised down slightly, during a second estimate, to 1.5%. Inflation fell in November, for the first time since October 2021, below the threshold of 2%, the objective set by the European Central Bank.
Over one month, consumer prices fell by 0.5% in December, after a drop of 0.3% the previous month. This is mainly explained by the 0.6% drop in the prices of food products compared to the previous month, specifies Ine.
The harmonized price index, which allows comparison with other countries in the euro zone, recorded an increase of 1.8% over one year in December, compared to 2.2% in November.
Portuguese households have benefited this year from a set of measures decided by the government to help them cope with inflation, such as the application of “zero rate” VAT since April, on a range of essential food items. A measure which will not be extended next year.
