The Consumer Price Index (CPI) annual rate was 1.5% in July 2021 (0.5% in June). This acceleration mainly reflects the dissipation of base effects. The annual core inflation rate, which excludes energy and unprocessed food products, was 0.8% (-0.3% in the previous month).
The CPI monthly rate was -0.3% (0.2% in June and -1.3% in July 2020), while the CPI 12-month average rate was 0.4% (0.3% in the previous month).
In July 2021, the Portuguese Harmonised Index of Consumer Prices (HICP) annual rate was 1.1% (-0.6% in the previous month). This rate is 1.1 percentage points (p.p.) below the figure estimated by Eurostat for the Euro area (in June this difference was 2.5 p.p.). The decrease of this differential is in part related to the uneven impact of the COVID-19 restrictions across the member states in 2020, which resulted in base effects of different magnitude and duration.