The inflation rate has been on the decline for eight months, after peaking above 10% in October last year. This does not mean that prices are going down, but rather that they are going up at a slower pace.
“This slowdown is partly explained by the base effect resulting from the increase in fuel prices seen in June 2022“, justifies the National Institute of Statistics (INE) in confirming the data that it had already estimated two weeks ago.
A year ago, the prices of energy products soared following the Russian invasion of Ukrainian territory and the sanctions applied by the West against Moscow, involving gas and oil. After this shock, energy prices fell by almost 20% in June compared to the index registered a year ago, contributing to the easing of inflationary pressures in Portugal.
As for unprocessed food products, which also suffered from the impact of the war, the index slowed to 8.5% last month, down 0.4 percentage points from May.
I've noticed prices easing back at the supermarket, and the petrol price is staying down too. EDP has also cut its tariffs. Amazing to learn inflation is back down to more normal levels in the low single digits, as the media is still reporting scare stories giving the impression that inflation is galloping.
By Billy Bissett from Porto on 13 Jul 2023, 10:14