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More expensive energy limits lower inflation

June confirmed the upward trend in energy prices, which prevents further reduction of annual inflation. According to the National Statistics Institute (INE), compared to the same month last year, prices for all goods and services increased by 2.8%, but if electricity and gas were excluded, the figure would have fallen to 2.4%.

As for energy products, compared to May, there was a “price increase of 1.9%, higher than that recorded in June 2023, which determined an increase in variation of 1.6 percentage points” over the year, emphasize the technical specialists of INE. In practice, prices last month were 16.3% higher than the 2021 average and 9.4% higher than in June 2023.

The Jornal de Negócios newspaper reported on Friday that after a long period of helping to reduce inflation, energy prices in Portugal have been rising steadily since the beginning of the year. According to the same source, the 25% increase in electricity prices partly explains the increase in energy costs borne by families and companies.

According to INE, the 9.4% rise in energy prices in June compared with the same month in 2023 corresponds to the highest value since December 2022, the year of Russia’s invasion of Ukraine, which led to disruptions in energy supplies and rising prices.

Author: Joao Maltes
Source: CM Jornal

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