The Consumer Price Index (CPI) rises in October up to 1.8%, three tenths more than the previous month, according to data confirmed this Thursday by the National Institute of Statistics (INE). Additionally, food inflation fell to 1.4%, the lowest rate in almost three years (since October 2021).
The statistical body specifies that the rise in inflation is due to the increase in fuel prices and, to a lesser extent, the rise in electricity and gas prices, compared to the fall they experienced in October 2023.
Remember that since October 1, VAT on food products has been reinstated after almost two years of a 0% tax credit. From October to December, the rate will be 2%, then increase to the 4% it was before the inflationary crisis.
With interannual CPI data for the tenth month of the year, inflation resumes its rise after having had four consecutive months of setbacks.
For his part, underlying inflationwhich excludes fresh produce and energy due to its high volatility, also increased slightly and stood at 2.5%, a tenth more than in September.
In monthly terms, The CPI rose 0.6% from the previous month, its largest monthly increase since last April, when it rose 0.7%.
This monthly increase is due to the increase in prices in the clothing and footwear group by 8.5% due to the start of the autumn-winter season, and the increase in the price of food products by 1. 4% due to the increase in fruit prices. and legumes and vegetables.
Below 2%
For its part, the harmonized CPI (IPCA) increased by a tenth in October, to 1.8%, and increased by 0.4% in monthly values.
From the Ministry of Economy, they emphasize that Inflation remains below the 2% reference level set by the European Central Bank (ECB).
