Portuguese CPI Falls 0.5% in July, Easing Inflation Pressures

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

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

While the monthly figure shows a clear retreat, annual inflation remains a key focus for policymakers. The year-on-year rate for July is estimated at 2.5%, down from 2.8% in June, edging closer to the European Central Bank's 2% target.