FX.co ★ Portugal's GDP Growth Improves As Estimated, Inflation Rises Slightly

Portugal's economy demonstrated accelerated growth during the third quarter, as per initial estimates, according to the recent report from Statistics Portugal released on Friday. In tandem, separate official figures indicated a slight increase in consumer price inflation for November.

During the quarter ending in September, the Gross Domestic Product (GDP) grew by 1.9 percent year-over-year, compared to a 1.6 percent rise in the preceding June quarter.

Quarter-on-quarter, GDP maintained a steady growth rate of 0.2 percent in the third quarter, as anticipated.

The annual increase in domestic demand slightly improved from 2.5 percent to 2.6 percent, driven by heightened private consumption and reduced investment, the agency reported. Conversely, net external demand contributed negatively, accounting for a 0.8 percent decrease.

Consumer price inflation reached 2.5 percent in November, up from 2.3 percent in the prior month, as per preliminary data.

The upward trend in inflation was predominantly fueled by a 2.1 percent increase in energy product prices. Meanwhile, the year-on-year price rise for unprocessed food products moderated to 1.9 percent from October's 2.1 percent.

Core inflation, which excludes energy and unprocessed food items, remained stable at 2.6 percent.

On a month-to-month basis, consumer prices saw a 0.2 percent decline in November, counteracting the 0.1 percent increase registered in the previous month.

The harmonized inflation rate for the EU edged up to 2.7 percent from October's 2.6 percent.