Portugal’s Inflation Holds at 3.3% in May

Portugal’s inflation rate remained steady at 3.3% year-over-year in May 2026, matching the highest level since September 2023, primarily driven by a 13.1% surge in energy costs amid the Middle East war and the Strait of Hormuz closure. Services inflation accelerated to 3.4% from 3.2%, while food inflation eased, unprocessed food fell to 5.7% from 7.5%, and processed food declined to 1.4% from 2.4%. Core inflation, excluding energy and unprocessed food, held at 2.2% for the second consecutive month. On a monthly basis, consumer prices rose 0.2%, following a 1.4% increase in April. The EU-harmonized inflation rate stood at 3.1%, down slightly from 3.3% the previous month.

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.