Flash Notes

And finally inflation is coming down...

• In June, the inflation rate in Portugal showed another significant downward movement. According to INE’s preliminary estimate, the yoy rate stood at 3.4%, below 4% for the first time since January 2022, before the outbreak of war in Ukraine. Most recent signals from most price indicators are favourable. For now, the scenario is one of disinflation above the trend in the EMU as a whole (CPIH yoy stood at 5.5%), which in itself points to gains in external competitiveness. That is good news.