Portugal’s inflation slows down sharply to 4% in May
2023.05.31 07:47
© Reuters. FILE PHOTO: People talk at the vegetable market in Olhao in the southern Portuguese province of Algarve March 12, 2013. . REUTERS/Jose Manuel Ribeiro
LISBON (Reuters) – Portuguese consumer prices rose 4.0% year-on-year in May in a significant slowdown from a 5.7% increase the previous month, also slipping slightly on a monthly basis, flash data released by the National Statistics Institute (INE) showed on Wednesday.
Core inflation, which strips out volatile food and energy prices, clocked 5.5% year-on-year, down from a reading of 6.6% in April.
The decline in the main inflation rate was driven by a 15.5% slump in energy prices from a year ago, following 12.7% drop in April, while prices of unprocessed food products rose 8.9%, at a slower pace than April’s 14.1%, helped by an exemption of essential food items from value-added tax.
The government has removed for six months the VAT on a list of more than 40 essential goods, including milk, bread, rice, tomatoes, and some types of meat and fish.
On a monthly basis, consumer prices slipped 0.7%.
Inflation has been cooling off after peaking at 10.1% year-on year in October, the fastest pace of consumer price rises in more than three decades.
