The estimated annual variation rate of the Consumer Price Index (CPI) for March is 0.6 percentage points (p.p.) higher than that observed in the previous month, according to INE.

The statistical office points out that this increase is “almost entirely explained by the rise in fuel prices” in March, reflecting higher oil prices.

The index for energy products increased to 5.8% after a 2.2% decline in February.

This rise in fuel prices coincides with the impact of the war in Iran at the end of February and the consequent closure of the Strait of Hormuz, through which about 20% of global oil production and almost 20% of liquefied natural gas (LNG) pass.

The underlying inflation indicator, which excludes unprocessed food and energy products, rose 2.0% in March, a rate 0.1 percentage point higher than the second month of this year.

As for unprocessed food products, the increase slowed from 6.7% in February to 6.4% in March.

Like the variation in the CPI, the Portuguese Harmonised Index of Consumer Prices (HICP), which allows comparisons with other European countries, will also have registered an annual variation of 2.7% in the month under analysis (2.1% in February).