“The year-on-year variation in the IPC was 2.8% in June 2024, a rate 0.3 pp lower than that recorded in the previous month. Rounded to one decimal place, this rate coincides with the value of the quick estimate released on June 28th”, says INE.

The underlying inflation indicator (total index excluding unprocessed food and energy products) in June was revised upwards by 0.1 p.p., to 2.4%, against 2.7% in May.

In June, the variation in the index relating to energy products was confirmed at 9.4%, against 7.8% a month before.

The index for unprocessed food products slowed to 1.8% (2.5% in May), having been revised downwards compared to the 2.0% estimated at the end of June.

In monthly terms, the IPC showed zero variation, after increases of 0.2% in May and 0.3% a year earlier.

The average variation over the last 12 months was also confirmed at 2.5%, equivalent to a drop of 0.1 pp compared to the average in the 12 months prior to May.

Excluding unprocessed food and energy products, the 12-month average rate of change was 3.0%, while the monthly change was -0.2%, against 3.3% and 0.3% in May, respectively.

As for the Portuguese Harmonized Index of Consumer Prices (HIPC), it registered a year-on-year variation of 3.1%, in line with estimates at the end of June. This value was 0.7 p.p. lower than that recorded in May, but 0.6 p.p. higher than that estimated by Eurostat for the Euro area (in May the rate in Portugal had been higher than that of the Euro area by 1.2 p.p. ).

“This slowdown is largely due to the reduction in hotel prices, whose acceleration recorded in May was essentially due to a cultural event of significant size that took place in Lisbon”, explains INE.

Without unprocessed food and energy products, the HICP in Portugal was 2.7% in June, against 3.6% in May, and below the corresponding rate for the Euro area, estimated at 2.8%.

In June, the HIPC recorded a monthly variation of -0.3% (1.0% in the previous month and 0.4% in June 2023) and an average variation of the last 12 months of 3.2% (3.3 % in the previous month).