The Consumer Price Index (CPI) annual rate was 0.5% in June 2021 (1.2% in May). This deceleration mainly reflects the base effect related to the price increases registered in June 2020. The annual core inflation rate, which excludes energy and unprocessed food products, was -0.3% (0.6% in the previous month).
The CPI monthly rate, which is not affected by the mentioned base effect, was 0.2% in May and June (0.9% in June 2020), while the CPI 12-month average rate was 0.3% (0.2% in the previous month).
In June 2021, the Portuguese Harmonised Index of Consumer Prices (HICP) annual rate was -0.6% (0.5% in the previous month). This rate is 2.5 percentage points (p.p.) below the figure estimated by Eurostat for the Euro area (in May this difference was 1.5 p.p.). The increase of this differential is in part related to the uneven impact of the COVID-19 restrictions across the member states in 2020, which resulted in base effects of different magnitude and duration.