Inflation rate slows down in June in the Eurozone and in Portugal.

The inflation rate continues to decrease both in the Eurozone and in Portugal.

The inflation rate decreased in the eurozone and in Portugal, in June, to 2.5% and 2.8% respectively.  

The annual inflation rate in the Eurozone thus represents less than half of the 5.5% recorded in the same month of 2023, being one of the lowest percentages in recent months, according to data from Eurostat shared by Notícias ao Minuto. Furthermore, it was at 2.6% in May 2024.

"Specifying the main components of inflation in the eurozone, the statistical office estimates that services have the highest annual rate in June (4.1%, stable compared to May), followed by food, alcohol and tobacco products (2.5%, compared to 2.6% in May), non-energy industrial products (0.7%, stable compared to May) and energy (0.2%, compared to 0.3% in May)", can be read in the news released.

Regarding the year-on-year inflation rate in Portugal, it stood at 2.8% in June, which is 0.3 percentage points lower than the previous month - according to the National Statistics Institute (INE).

"The underlying inflation, which excludes raw food and energy products, was 2.3% in June, compared to 2.7% in May. In turn, the variation in the index related to energy products increased to 9.4%, compared to 7.8% in May, while the index for raw food products slowed to 2.0%, after 2.5% in the previous month," details Notícias ao Minuto.

Regarding the Portuguese Harmonized Index of Consumer Prices (HICP), it registered a year-on-year variation of 3.1%, having been 3.8% in May. According to INE, the slowdown is largely due to "the reduction in hotel prices, whose acceleration recorded in May was essentially due to a significant event that occurred in Lisbon".

It is worth noting that the inflation rate has been decreasing in recent months, after reaching historical values with the reopening of the economy post-Covid-19 pandemic, the energy crisis, and consequences of the war in Ukraine. However, the value is still above the target set by the European Central Bank (ECB) for price stability, which would be 2%.  

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