Inflation in Portugal lowest in euro zone again

By TPN/Lusa, in News · 07-01-2020 16:42:00 · 1 Comments

Portugal in December again had the lowest annual rate of inflation in the euro zone, at 0.4%. as the rate for the zone as a whole increased to 1.3% from 1.0% in November, according to a flash estimate released by Eurostat, the European Union’s statistics office.

Portugal had in November also recorded the lowest annual inflation rate, along with Italy, at 0.2%. In December, it had the lowest rate among the 17 euro-zone countries for which Eurostat has estimates already available.

There are not yet data for December from Estonia and Austria. The full figures are to be published on 17 January.

The highest annual rates of inflation in December were in Slovakia (3.2%), the Netherlands (2.8%) and Lithuania (2.7%).

According to the Eurostat release, of the main components of inflation in the euro area, the rate for food, alcohol and tobacco is thought to have been the highest in December (2.0%), followed by services (1.8%).


Comments:

This may not be a good thing. Very low inflation usually signals demand for goods and services are lower than they should be, and this tends to slow economic growth and depress wages. This low demand can even lead to a recession with increases in unemployment

By Stephen Clarke from Other on 08-01-2020 04:18
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