Inflation accelerates to 2.9% in December

Reversing the trend of the last seven months, inflation in Portugal last month rose to 2.9%, after November’s impressive 2.4%. Today’s ‘flash estimate’ from INE (statistics institute) will need to be confirmed later this month, but everyone points to a creeping up of inflation, just at a point where the IVA ZERO mechanism has been removed. The picture however is markedly better than it was in December 2022 when inflation through the eurozone stood at 9.2%.