Portugal Sept CPI up 0.6 pct from Aug as sales end

LISBON, Oct 11 (Reuters) - Portugal's consumer price index rose 0.6 percent in September after dipping the previous month as summer clothing and footwear sales drew to a close and new collections hit the shelves, the National Statistics Institute said on Thursday.

But year-on-year inflation last month eased to 2.9 percent from 3.1 percent in August as consumer demand in the recession-hit, bailed out nation remained weak. Average annual inflation clocked 3.3 percent, the same as the previous month.

Portugal has imposed painful tax hikes and pay cuts under the terms of a 78-billion euro EU/IMF bailout. The austerity has hit consumer demand and caused the deepest recession since the 1970s.

Analysts surveyed by Reuters had expected, on average, a month-on-month CPI rise of 0.4 percent.

(Reporting By Filipa Cunha-Lima and Andrei Khalip)


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