In April, food inflation cooled for the first time in 15 months, yet it remained high at 12.9 percent. The national consumer price index showed a monthly increase of six‑tenths, while the annual rate hovered around 4.1 percent. Core inflation, which excludes the most volatile energies and fresh foods, slipped nearly one percentage point month over month, landing at 6.6 percent after 7.5 percent in March. This pattern reflects a mixed landscape where some prices cooled while others held firm.
Food inflation, which has climbed steadily since early 2021, declined by 3.5 percentage points in April to 12.9 percent, marking a retreat from its February peak of 16.6 percent. The VAT reductions applied to certain food items at the start of the year, along with a softer energy market in recent months, are clearly easing food price pressures. However drought risks threaten to push fresh product costs higher again, sustaining elevated food inflation well above 10 percent since April of the previous year.
According to the national statistics agency, the April CPI movement mainly resulted from a slower drop in electricity prices compared with April of the previous year and a smaller increase in fuel prices, which had benefited from a discount last year. On the flip side, food and nonalcoholic beverages stood out for slower price gains this month than in April 2022, when monthly increases reached about 3.4 percent. These shifts illustrate how different sectors contribute to overall inflation, with energy pressures easing while food remains a central concern for households and policymakers.
When comparing March 2022 to recent months, the inflation path showed a familiar pattern. The war in Ukraine had previously accelerated the initial decline in inflation in early 2022, creating a notable drop from 6 percent to around 3.3 percent by March. This time, the so‑called step effect influenced April, producing a rebound in the inflation rate rather than a continued decline. Such dynamics highlight the sensitivity of price levels to external shocks and policy adjustments, and they underscore the ongoing challenge of steering inflation toward the target while supporting household budgets. Source: INE