Portugal Inflation Rate Surges to 2-1/2-Year High

The annual inflation rate in Portugal surged to 3.36% in April of 2026 from 2.71% in the previous month, reflecting the highest pace of price growth since September of 2023, according to a preliminary estimate. Energy inflation surged to 11.69% from 5.74% in March, underscoring the impact from tight oil and gas supplies following the outbreak of war in the Middle East. Meanwhile, inflation rose for fresh food (7.45% vs 6.39%) and unprocessed food (2.42% vs 1.38%). The core inflation rate inched higher to 2.21% from 2.01%.

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.