The year-on-year rate of change in the Consumer Price Index (CPI) is said to have fallen to 2.5% in July, a rate 0.3 percentage points (p.p.) lower than that observed in the previous month. This data, although provisional, indicates that rents are expected to rise next year.

It should be noted that the annual update of rents is made automatically based on the average inflation of the last 12 months recorded in August, excluding the housing component.

And, according to data from the INE, the inflation rate used to calculate rent updates stood at 2.32% in July, 0.05 percentage points less than the previous month (2.37%).

The July data already allows us to anticipate the final figure, although the final figures will only be released at the end of the month.