Portugal’s Inflation Confirmed at Seven-Month High in March

Portugal’s annual inflation rate held at 2.7% in March 2026, the highest since August 2025, as the Middle East conflict continued to roil global energy markets. Energy prices surged 5.7%, marking the first increase in six months and the main driver of the rise. Processed food inflation accelerated to 1.4% (up from 0.9% in February), while unprocessed food price growth eased slightly to 6.4% (from 6.7%). Services inflation remained steady at 3.4%. The core inflation rate, which strips out volatile energy and unprocessed food costs, edged up to 2% from 1.9%, pointing to widening price pressures across the economy.

Portugal’s annual inflation rate climbed to 2.7% in March 2026, up from 2.1% in February and reaching its highest level since August 2025, according to a preliminary estimate. The surge was primarily driven by a 5.8% jump in energy prices, reversing February’s 2.2% decline, as the Middle East conflict continued to disrupt global energy markets. Processed food prices also accelerated, rising 1.4% (from 0.9% in February), while unprocessed food inflation eased slightly to 6.4% (from 6.7%). Meanwhile, the core inflation rate, which excludes volatile energy and unprocessed food, ticked up to 2% from 1.9%, signaling broadening price pressures.

The annual inflation rate in Portugal rose to 2.1% in February 2026 from a ten-month low of 1.9% in January, confirming the preliminary estimate. Unprocessed food products saw a faster increase of 6.6% versus 5.8% in January, likely reflecting fresh vegetable price hikes after supply disruptions from recent storms. Prices for processed food rose by 0.9%, after a 0.8% increase previously. Meanwhile, energy prices declined 2.3%, after a 2.4% drop in the preceding month. The core inflation rate, excluding energy and unprocessed food, edged up to 1.9% from 1.8% in January. On a monthly basis, the CPI increased 0.1% in February, matching an earlier forecast, after a 0.7% fall in the month before.