Against the previous month inflation was -0.6% and the 12-month average remained at 1.1%, unchanged from the previous month, the National Statistics Institute (INE) noted.

Underlying inflation (excluding energy and unprocessed food products) recorded a 1% rise on year, the same as the rise seen in June.

Meanwhile, the harmonised index of consumer prices (HICP) increased by 2.2% year-on-year, 0.2 percentage points higher than in the previous month and 0.1 percentage points lower than Eurostat's estimate for the euro zone (in June, there was no difference.)

Housing rental prices increased 2.1% in July, higher than the previous month by 0.2 percentage points, although in Lisbon the rise was 2.7%, INE noted.

IN the same month the average price per square metre for house rentals rose by 0.2%, with the Algarve the “region with the highest monthly variation” INE said.