Portugal Inflation Rate Accelerates to 3.3%

Portugal’s annual inflation rate edged up to 3.3% in August 2026, from 3.0% in July, according to a preliminary estimate. The acceleration was mainly driven by a sharp increase in fuel prices, while energy inflation rose to 12.2% from 8.7%. Processed food inflation also edged higher to 1.5% from 1.4%. In contrast, inflation for unprocessed food moderated to 3.4% from 3.7%. Core inflation, excluding energy and unprocessed food, increased to 2.7% from 2.6%, remaining close to its highest level in nearly two years. The EU-harmonized inflation rate accelerated to 3.6%, its highest level since May 2024 and well above the ECB’s 2% target.

Portugal’s annual inflation rate edged down to 3.0% in July 2026, easing for a third consecutive month and confirming the preliminary estimate. The slowdown was driven mainly by softer energy inflation, which fell to 8.7% from 9.1%. Goods inflation eased to 2.2% from 2.4%, reflecting slower food price growth (2.2% vs 3%), while services inflation declined to 4% from 4.2%, led by lower inflation for housing and utilities (3.2% vs 3.6%), transport (4.9% vs 5.5%), and restaurants and hotels (6% vs 6.2%). The core inflation index, which excludes energy and unprocessed food products components, rose to 2.6% from 2.5%. On a monthly basis, consumer prices fell 0.5% after rising 0.1% in June. Meanwhile, harmonised inflation held at 3.1%, near a two-year high and above the European Central Bank's 2.0% target.

Portugal's annual inflation rate edged down to 3.0% in July 2026, easing for a third consecutive month, according to a preliminary estimate. The slowdown was driven by softer energy inflation, which eased to 8.7% from 9.1%, and slower food price growth, with unprocessed food inflation falling to 3.7% from 5.1%. However, underlying price pressures strengthened, as core inflation, which excludes energy and unprocessed food, rose to 2.6% from 2.5%. Meanwhile, the EU-harmonized inflation rate remained unchanged at 3.1%, hovering near its highest level in two years and staying well above the European Central Bank's 2.0% target.