Inflation remains at 4.9% in October despite falling fuel prices

Inflation remains steady at 4.9% year-on-year in October, unchanged from September, according to the National Statistics Institute (INE). Fuel prices have decreased, but this has not significantly impacted overall inflation, as other costs have risen. The core inflation rate, excluding fresh food and energy, also held steady at 3.1%. The Harmonized Consumer Price Index (IPCA) slightly decreased to 4.9%, with a monthly increase of 0.5%. Funcas had anticipated a drop to 4.6% but now projects a potential decrease to 4.3% by December, amid uncertainties due to geopolitical tensions and government fiscal measures, including a maintained fuel tax reduction.