Year-on-year inflation accelerated to 9.1% in July, compared to 8.7% in June, revealed the National Institute of Statistics (INE). The quick estimate of the INE indicates that this is the highest value recorded since November 1992, that is, in almost 30 years.

Energy products continue to be the main responsible for the rise in inflation, with a variation of 31.2% compared to July last year, although 0.5 basis points below that registered in June. But in July, food prices pushed inflation even further, which rose again compared to June, with a variation of 13.2% compared to 11.9% in the previous month.

According to the INE, the underlying inflation indicator (total index without unprocessed food or energy products) registered a variation of 6.2% (6.0% the previous month), which represents the highest value since April 1994. The definitive CPI data for the month of July 2022 will be published on August 10.

Inflation in Portugal above the eurozone average

The INE affirms that even though the average price variation of the last 12 months rose to 4.7% compared to 4.1% in June. The Portuguese Harmonized Index of Consumer Prices (HICP), which is used for the European comparison, will have registered a year-on-year variation of 9.4% (9.0% in the previous month), which places it above the evolution expected for the euro zone where year-on-year inflation reached 8.9% in July.

Eurostat data, also published this Friday, indicate that inflation continued to increase, but at a more moderate pace, having increased by 0.3 basis points compared to June.

According to the estimate of the European statistical body, year-on-year inflation in Portugal was the eleventh highest in the euro area, but has not yet reached the double digits that have already been reached in 10 euro countries, including Spain, where consumption price index harmonized growth to 10.8% in July.

Inflation in Spain at 10.8% in July, the highest value in 38 years