The Consumer Price Index for November showed a slight drop, easing by one tenth, while the year over year rate slowed by half a percentage point from the prior month, landing at 6.8 percent. This is the lowest annual CPI reading since January, just before the war in Ukraine dominated headlines. These figures come from an advanced data release by the National Institute of Statistics, which appeared on a Tuesday.
The November data, which will be confirmed by the statistical agency in the middle of next month, reveal a decline from the July peak. Inflation had climbed to 10.8 percent at that peak, marking the highest level since September 1984.
With the November moderation, the yearly inflation rate settled at 10.5 percent after four straight monthly declines. Earlier in the year, the rate fell by 0.3 percentage points in August, then dropped 1.6 points to 8.9 percent in September, and again fell by 1.6 points to 7.3 percent in October.
Officials at the INE point to falling prices in key categories as the main driver behind the 6.8 percent year over year CPI in November. The declines are particularly evident in energy and fuel costs, which eased overall inflation pressures.
Another contributing factor is a slower rise in clothing and footwear prices during November compared with the same month in 2021, influenced by the new winter season. This softer pace helped moderate the overall inflation trajectory.
The core trend rose to 6.3 percent
The INE also provides a measure of underlying inflation within the CPI data preview, excluding unprocessed food and energy products. In November, this underlying rate rose by 0.1 percentage point to 6.3 percent, remaining five-tenths of a point below the overall CPI level.
This underlying increase follows two months in which the core rate held at 6.2 percent. On a month to month basis, November shows a slight softer pace for the CPI compared with October, with a tenth of a percentage point decline after a 0.3 percent rise the prior month and the year before.
Looking back to late 2022, the Harmonized Consumer Price Index track shows an interannual rate of 6.6 percent, a figure that was seven tenths lower than the previous month. The estimated monthly change in the IPCA was negative 0.5 percent, reflecting a broad cooling in price pressures across the economy.
Official final CPI data for November are anticipated to be released on December 14, providing a more complete picture of price movements across goods and services for the month.