Inflation rate drops to 1.5% in Portugal: New prices, new budget?

For a better budget organization, why not try to lower monthly installments for loans and/or insurance policies? Contact the credit intermediaries of Poupança no Minuto for more information. To understand which values of rates are at stake and how to reorganize the budget, read on.

Inflation rate in Portugal slows down more than expected.

Prices slow down with the decline of inflation to 1.5% in November: A lower value than the one expected by the National Institute of Statistics, which would point to 1.6%.  

The rate, now disclosed by the Consumer Price Index, is 0.6 percentage points lower than the previous month.  

In a report by INE, quoted by Notícias ao Minuto, it is explained that the main contribution to the slowdown "comes from the base effect associated with the monthly price increase recorded in food products last month (0.4%) being lower than what was observed in November 2022 (1.7%)".

Regarding the underlying inflation indicator, in November it stood at 2.9%, compared to 3.5% in October.  

In energy products, the decrease in the rate was from -12.1% to -12.4%; in non-transformed food products from 4.0% to 3.5%.

The monthly variation of the IPC reflected in -0.3%, compared to 0.2% in the previous month, and the variation of the last 12 months at 5.0%, compared to 5.7% in October.

The variations of the Portuguese Harmonized Index of Consumer Prices (HICP) reflected in the following values:  

• 2.2% year-on-year variation, compared to 1.0% from the previous month and 0.2% lower than the value predicted by Eurostat for the Euro area; & nbsp;
• 3.6% variation excluding food, non-transformed, and energy products, compared to 4.8% from the previous month and lower than the expected rate for the Euro area of 4.2%;
• -1.0% monthly variation, comparing to -0.4% of the previous month and 0.0% of November 2022;  
• 5.9% average variation over the last twelve months, compared to 6.6% from the previous month.

With inflation slowing down and prices dropping, rearrange your budget.

With inflation finally starting to slow down and prices returning to less inflated values, it is time to reorganize your budget.

After a more troubled financial period, you must learn from past mistakes: Did you struggle in this scenario? So, why not now allocate the budget slack to an emergency fund?

It is always important to set aside part of the budget for savings, so now that prices are starting to drop, try putting the savings in a "piggy bank".

If you want to further increase your budget flexibility, you can also try to lower insurance and credit payments that you have.  

To do this, go to the entities and request to negotiate the conditions of your contracts. And if you are not satisfied with the review, you can also transfer the contracts to new institutions that offer more advantageous proposals.

If this last option is feasible for you, turn to a credit intermediary or insurance mediator to help you! Poupança no Minuto offers both services, at no cost, accompanying you throughout the entire process. Contact us and find out more.