UPDATE 1-Portugal's April inflation slows down to 5.7%

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds food, energy prices, background) LISBON, April 28 (Reuters) - Portuguese consumer prices rose 5.7% year-on-year in April in a significant slowdown from a 7.4% increase in the previous month, with food inflation showing signs of abating, flash official data showed on Friday. The National Statistics Institute (INE) said core inflation, which strips out volatile food and energy prices, clocked 6.6% year-on-year, down from a reading of 7.0% in March. The decline in the main inflation rate was driven by lower energy prices, which came at a negative 12.7% after -4.4% in March, while prices of unprocessed food products rose 14.1% year-on-year in April after spiking 19.3% the previous month. Inflation has been slowly cooling off after peaking at 10.1% in October, the fastest pace of consumer price rises in more than three decades.


On a monthly basis, consumer prices rose 0.6%. The INE alerted that the large majority of prices were collected prior to an exemption of essential food items from value-added tax this month, so the full impact of this measure will only occur in May. To help families tackle stubbornly high food prices that are hitting households hard, the government has removed for six months the VAT on a list of 46 essential goods, including milk, bread, rice, tomatoes, and some types of meat and fish.
(Reporting by Patricia Vicente Rua and Gdansk Newsroom; Editing by Andrei Khalip)

Messaging: patricia.rua.reuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.