Inflation rate decreases (significantly) in Portugal and in the eurozone

Inflation rate in Portugal drops to 1.9% and in the euro area to 2.2%  

The inflation rate decreased significantly in Portugal and the eurozone in August compared to the previous month.  

In Portugal, the decline was 0.6 percentage points, dropping to 1.9%. According to the National Statistics Institute (INE), as read on Notícias ao Minuto, the year-on-year variation rate of the Consumer Price Index (IPC) settled at 1.9% in August 2024.  

"Based on the information already collected, the year-on-year growth rate of the Consumer Price Index (CPI) is expected to have decreased to 1.9% in August 2024," the INE news article states.  ”

With this return, the inflation rate falls back below 2% - as it has not been since December 2023.  

As for the core inflation indicator in Portugal, which excludes the most volatile prices such as unprocessed food and energy, it registered a variation of 2.4% (equal to the previous month).

Already in the eurozone and according to Eurostat, inflation decelerated by 0.4 percentage points, reaching 2.2% in August, as stated in the same news article.

The rate thus slows down compared to the 2.6% in July for the countries using the euro. "Looking at the main components of inflation in the euro area, services are expected to have the highest annual rate in August (4.2%, compared to 4.0% in July), followed by food, alcohol and tobacco (2.4%, compared to 2.3% in July), non-energy industrial goods (0.4%, compared to 0.7% in July) and energy (-3.0%, compared to 1.2% in July)," cites the news from Eurostat.  

The highest tax rates among the countries in the bloc were recorded in Belgium (4.5%), Estonia (3.4%), and the Netherlands (3.3%). In contrast, the lowest rates were recorded in Lithuania (0.8%) and Latvia (0.9%).

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