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CPI Portugal final data – August CPI: 3.30%YoY/+3bpMoM and Core inflation 2.64%YoY/-13bpMoM, in line with preliminary data. Services inflation 3.95%YoY, is slightly below 3MMA; so, the upwards pressure on prices is mainly from Energy products, +12.65%YoY, and Goods, +2.65%; as in fact Core Inflation at 2.6% in line with 3MMA, remains restrained...

The Portuguese Statistic Institute has just released, August’s CPI final data and its subcomponents.  

We would highlight the following:

• CPI: +3.30%YoY; in line with preliminary data; +3bp sequentially; compares with 12MMA (12 months moving average): 2.7% and 3MMA of +3.2%;
• Core CPI: +2.64%YoY (-13bpMoM); compares with 12MMA: +2.2%/3MMA +2.6%;

• Services: +3.95%YoY/+53bpMoM vs. 12MMA: +3.6%/3MMA: +4.1%;
• Goods: +2.65%YoY/-37bpMoM vs. 12MMA: 1.9%/3MMA: +2.4%;    
• Energy: +12.20%YoY/+289bpMoM vs. 12MMA: +4.3%/3MMA: +10.0%;

• Food and Non-alcoholic Bev: +2.14%YoY/-39bp MoM vs. 12MMA: +3.3%/3MMA: +2.4%;
• Clothing and Footwear: -1.16%YoY vs. 12MMA: -1.5%/3MMA: -1.5%;
• Household Equipment: -1.79%YoY vs. 12MMA: -1.7%/3MMA: -1.1%;  
• Restaurant/Meals: +6.71%YoY vs. 12MMA: +6.6+%/3MMA: +6.7%;
• Telecommunications (bundled services) -4.39% YoY/-73bpMoM vs. 12MMA: -1.8%/3MMA: -2.5%;
• Rents +5.22%YoY vs. 12MMA: +5.1% and 3MMA: 5.2%;
• Postal Services: +5.80%YoY vs. 12MMA: +5.9% and 3MMA: 5.8%.
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Our comments: final inflation data in August, 3.30%YoY/+3bpMoM and Core data: +2.64%/-13bp; in line with preliminary data. Interesting enough, Services inflation at 3.95%, is slightly below 3MMA, meanwhile, Energy inflation at 12.65%YoY is pressuring Goods inflation at 2.65%YoY and the headline inflation at 3.30%; as in fact Core inflation at 2.65%, in line with 3MMA, remains restrained. Finally, Food prices, at 2.14% below moving averages, are calming down, while Telecommunications prices (bundled Services) at -4.39% are under strong downwards pressure.

Source: INE, AS Independent Research