Portugal Inflation Slips to 1.9% in January

Portugal’s annual inflation rate edged down to 1.9% in January 2026, from 2.2% in December 2025, marking its lowest level since March, according to preliminary estimates. The slowdown was driven by softer food price pressures and continued energy deflation. Unprocessed food inflation cooled slightly to 5.8% (from 6.1%), while processed food inflation eased to 0.8% (from 1.0%). Energy prices remained in decline at -2.2% (vs -2.4%). Core inflation, excluding energy and unprocessed food, also moderated to 1.8%, down from 2.1%, pointing to broader disinflationary momentum. Meanwhile, the EU-harmonized HICP slipped to 1.9% from 2.4%, leaving inflation just below the ECB’s 2% target.

The annual inflation rate in Portugal stood at a seven-month low of 2.2% in December 2025, unchanged from November, in line with the preliminary estimate. Softer price increases were recorded mostly in transportation (0.9% vs 2% in November) and alcoholic beverages & tobacco (1.6% vs 1.8%), with communications (-2.8% vs -4%) and clothing & footwear (-1.7% vs -1.8%) still posting declines. Conversely, the main upward pressure came from restaurants & hotels (6% vs 5.3%) and food (3.5% vs 3.5%). The core inflation index, which excludes energy and unprocessed food products components, edged up to 2.1% from 2% in November, matching the preliminary estimate. The EU-harmonized CPI (HICP) inched up to 2.4% in December from November's 2.1%, sitting above the ECB’s midpoint inflation target. On a monthly basis, consumer prices rose 0.1%, matching the earlier reading, after a 0.3% decrease in the prior month. The average inflation rate was confirmed at 2.3% in 2025, down from 2.4% a year ago.

The annual inflation rate in Portugal stood at a seven-month low of 2.2% in December 2025, unchanged from November, preliminary estimates showed. Energy prices continued to decline (-2.4% vs -0.8% in November) and processed food inflation eased (0.9% vs 1.2%). Meanwhile, the index for unprocessed food rose 6.0%, matching November's rate. The core inflation index, which excludes energy and unprocessed food products components, edged up to 2.1% in December from 2% in the prior month. Meanwhile, the EU-harmonized index of consumer prices (HICP) inched up to 2.4% from 2.1% previously, sitting above the European Central Bank’s midpoint target. On a monthly basis, consumer prices rose 0.1%, after a 0.3% decrease in the previous month. The average inflation rate decelerated to 2.3% in 2025 from 2.4% a year ago.