Portugal CPI Drops 0.5% in July as Inflation Eases

Portugal's Consumer Price Index (CPI) dropped by 0.5% in July, matching analyst forecasts and indicating a continued cooling of inflationary pressures in the eurozone's ninth-largest economy.

The month-on-month decline was largely driven by lower costs in housing, water, electricity, gas, and other fuels category, as well as seasonal reductions in clothing and footwear prices. Transport costs also contributed to the decrease, reflecting lower fuel prices at the pump.

Annual inflation remains a key focus for policymakers, with the year-on-year rate estimated at 2.5% in July, down from 2.8% in June and edging closer to the European Central Bank's 2% target.