Portugal Inflation Rate Steady at 3.3%

The annual inflation rate in Portugal was unchanged at 3.3% in May 2026, remaining at the highest since September 2023, preliminary estimates showed. A faster increase in energy products (13.2% vs 11.7% in April) was offset by a slowdown in cost of unprocessed food (5.7% vs 7.5%). The core inflation index, which excludes energy and unprocessed food products components was 2.2%, the same value as in the previous month. On a monthly basis, consumer prices increased 0.3%, after a 1.4% rise in April. The EU Harmonised Index of Consumer Prices annual rate of change was 3.1% (3.3% in the previous month).

Portugal’s inflation rate reached 3.3% year-over-year in April 2026, slightly below the preliminary estimate of 3.4% but the highest since September 2023 and well above the ECB’s 2% target. The surge was primarily driven by an 11.7% jump in energy prices, as the Iran war and the closure of the Strait of Hormuz pushed costs higher. Food and non-alcoholic beverages also contributed, with prices rising 4.4% (up from 3.7%), particularly unprocessed food at 7.5% (compared to 6.4%). Services inflation, however, eased to 3.2% from 3.4%. On a monthly basis, consumer prices increased by 1.3% in April, following a 2% surge in March. The EU-harmonized index of consumer prices rose by 3.3% year-over-year, the highest since May 2024, and by 1.9% month-over-month.

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%.