The Consumer Price Index (CPI) annual rate was -0.3% in July 2019 (0.4% in June). This evolution is largely due to the negative contribution of changes in the prices of Restaurants and hotels. Lower prices of Clothing and footwear, for which the end of season discounts have been more intense in 2019 than in the previous year, and a decrease in the VAT rates for electricity and natural gas, have also influenced this result. The annual core inflation rate, which excludes energy and unprocessed food products, was -0.1% (0.6% in the previous month).
The CPI monthly rate was -1.3% (nil in the previous month and -0.6% in July 2018), while the CPI 12-month average rate was 0.7% (0.9% in June).
In July 2019, the Portuguese Harmonised Index of Consumer Prices (HICP) annual rate was -0.7% (0.7% in the previous month), reflecting the higher relative weight of Restaurants and hotels in the HICP compared to the CPI (see Table 2 on page 4 of this press release). This rate is 1.8 percentage points (p.p.) below the figure estimated by Eurostat for the Euro area (in the previous month, this difference was 0.6 p.p.).