Prices in Portugal fall back on restaurants, hotels and reduction of VAT on light and gas – O Jornal Económico

Prices in Portugal fell during the month of July. The annual rate of change of the Consumer Price Index (CPI) was -0.3% in July, the INE said today.

“This evolution is largely due to the contribution of the negative variation in the prices of the restaurant and hotel class”, according to the statement released by INE this Wednesday, July 31st. "The reduction in the VAT rate on electricity and natural gas also contributed to the reduction in this rate."

In turn, the underlying inflation indicator, which excludes unprocessed food and energy, will have fallen to -0.1%, after registering 0.6% in the previous month.

The annual rate of change in the energy index will have fallen to -2.8% in July, after reaching -2.5% in June.

The Portuguese Harmonized Index of Consumer Prices (HICP) reported a year-on-year change of -0.7% (reaching 0.7% in June), “reflecting the higher relative weight of the class of restaurants and hotels in this index”, according to the INE.

The definitive July consumer price index data will be published on 12 August.

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