Portugal's inflation driven higher by food and alcohol while trade gap narrows

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Portugal’s annual consumer price index rose to 1.0 per cent in June, slightly higher than estimates of 0.9 per cent and last month's figure of 0.7 per cent. The largest upward pressure came from changes in prices of food and alcoholic beverages.

The country’s trade deficit in the three months to May, meanwhile, was -€1.921bn, slightly better than the prior year's figure of -€1.992bn. Exports rose by 5.7 per cent year-on-year, particularly in mineral fuels, machinery and mechanical appliances, and plastics and rubber products. Imports fell 1.6 per cent, largely due to a a reduction in mineral fuels from coming from outside the EU.

Portugal's president Cavaco Silva will address the country at 2030 tonight following days of talks with political leaders after the panic following the resignation of junior coalition leader Paulo Portas (now back in the government as deputy prime minister).