Portugal Inflation Eases to 3.2% in June

Portugal’s consumer price inflation rate dipped to 3.2% year-over-year in June 2026, down from the over two-year high of 3.3% recorded in April and May, according to a preliminary estimate. Energy inflation slowed to 9.2% from 13.1%, and food price growth also moderated, with unprocessed food inflation easing to 5.2% from 5.7%. However, core inflation, which excludes energy and unprocessed food, climbed to 2.5% from 2.2%, indicating broadening price pressures. The EU-harmonized inflation rate held steady at 3.1%, remaining near its highest level in two years and well above the ECB’s 2.0% target.

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).