The Consumer Price Index (CPI) annual rate decreased to 5.7% in April 2023 (7.4% in March 2023). This deceleration mainly reflects the base effect related to the price increases in electricity, gas and food products, registered in April 2022. The annual core inflation rate, which excludes energy and unprocessed food products was 6.6% (7.0% in the previous month). The annual rate of change for energy products decreased to -12.7% (-4.4% in March 2023) and the index for unprocessed food was 14.1% (19.3% in the previous month). It is important to mention that the large majority of prices were collected prior to the entry into force of the VAT exemption for several essential food items. Thus, the impacts of this legislative measure on the CPI will only occur in May.

The CPI monthly rate was 0.6% (1.7% in March and 2.2% in April 2022), while the CPI 12-month average rate was 8.6% (8.7% in the previous month). 

In April 2023, the Portuguese Harmonised Index of Consumer Prices (HICP) annual rate was 6.9% (8.0% in the previous month). This rate is 0.1 percentage points (p.p.) below the figure estimated by Eurostat for the Euro area (in March, the Portuguese rate was 1.1 p.p. above the Euro area). Excluding energy and unprocessed food products, the Portuguese HICP was 8.2% in April (8.1% in March), above the corresponding rate for the Euro area (estimated at 7.3%).