The strong slowdown is explained by the “base effect associated with the monthly price increases recorded in October 2022 in food products (2.1%) and energy products (6.7%), with emphasis on natural gas (77. 4%)”, highlights the statistics office. It should be remembered that the inflation rate in October 2022 was 10.1%, the highest level since May 1992.
In the chain comparison, the IPC “was -0.2% (1.1% in the previous month and 1.2% in October 2022)”, notes INE. “The average variation of the last twelve months decreased to 5.7% (6.3% in September)”.
Regarding the underlying inflation indicator, which excludes unprocessed food and energy products, it slowed to 3.5% in October, compared to the same period last year, that is, a decline of 0.6 percentage points compared to 4.1 % recorded in the previous month.
The Harmonized Consumer Price Index (HIPC), which allows comparison between European countries, “showed a year-on-year variation of 3.2%, 1.6 p.p. lower than that recorded in the previous month and 0.3 p.p. higher than the previous month”, the statistics office also notes.
In The Portugal News