(reading time: 3 mins)

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

We would highlight the following:

• - CPI: +3.27%YoY; in line with preliminary data; +25bp sequentially; compares with the 12MMA (12 months moving average): 2.5% and 3MMA of +3.1%;
• • - Core CPI: +2.19%YoY (+41bpMoM); compares with the 12MMA: +2.1%/3MMA +2.1%;
• - Services: +3.42%YoY/+68bpMoM vs. 12MMA: +3.7%/3MMA: +3.3%;
• - Goods: +3.13%YoY/-0.09%MoM vs. 12MMA: 1.7%/3MMA: +2.9%;    
• - Energy: +13.14%YoY/-34bpMoM vs. 12MMA: +1.6%/3MMA: +10.2%;
• - Food and Non-alcoholic Bev: +3.25%YoY/-31bp MoM vs. 12MMA: +3.6%/3MMA: +3.8%;
• - Clothing and Footwear: -0.57%YoY vs. 12MMA: -1.5%/3MMA: -1.2%;
• - Household Equipment: -0.70%YoY vs. 12MMA: -1.5%/3MMA: -0.9%;  
• - Restaurant/Meals: +6.48%YoY vs. 12MMA: +6.5+%/3MMA: +6.6%;
• - Telecommunications (bundled services) -0.03% YoY vs. 12MMA: -1.3%/3MMA: -0.3%;
• - Rents +5.17%YoY vs. 12MMA: +5.1% and 3MMA: 5.1%;
• - Postal Services: +5.80%YoY vs. 12MMA: +6.0% and 3MMA: 5.8%.

Our comments: final inflation data in May, 3.3%YoY and Core data: 2.2%; in line with preliminary data. Figures are consolidation slightly above 3MMA, which is positive, while MoM data is adjusting. Energy, 13.14%YoY and slightly down MoM, is showing signals of stabilization. Services inflation remained below 12MMA and only slightly above 3MMA, while Goods inflation, 3.13%YoY/-9bpMoM, is calming down, even so it will depend on energy prices.