Portugal Inflation Rate Confirmed at 3-Year High

Portugal’s annual inflation rate rose to 3.6% in September 2026, marking the highest reading since August 2023, from 3.3% in August 2026, confirming the preliminary estimate. The increase was mainly driven by higher fuel costs, with energy prices up 15.3% from 12.2% in August. Transport prices were the main upward contributor (8.2% vs 6.4%), followed by restaurants and accommodation services (7.2% vs 6.2%). Unprocessed food prices also picked up to 3.7% from 3.4%. Core inflation, which excludes energy and unprocessed food, rose to 2.7% from 2.6%. On a monthly basis, consumer prices increased 1.2% after no change in August, as clothing prices jumped 21.5% with the start of the autumn/winter season. Meanwhile, harmonised inflation held at 3.6%, well above the ECB’s 2% target.

Portugal’s annual inflation rate rose to 3.6% in September 2026, up from 3.3% in August, according to a preliminary estimate. It was the highest rate since August 2023, driven mainly by a sharp rise in fuel prices, with energy inflation accelerating to 15.4%, its strongest increase since December 2022. Unprocessed food inflation also edged up to 3.6% from 3.4%, while processed food inflation was little changed at 1.4%. Core inflation, excluding energy and unprocessed food, rose to 2.7% from 2.6%, its highest level in nearly two years. The EU-harmonized inflation rate stood at 3.6%, its highest since May 2024 and well above the ECB’s 2% target.

Portugal’s annual inflation rate accelerated to 3.3% in August 2026, up from 3.0% in July, reaching its highest level since April. The increase was driven primarily by a sharp acceleration in transport prices, which rose 6.4% year-on-year, compared with 4.9% in July, largely reflecting higher fuel costs amid escalating tensions in the Middle East. Additional pressure came from miscellaneous goods and services (4.5% vs 4.1%), financial and insurance services (3.1% vs 2.6%), restaurants and hotels (6.2% vs 6.0%), and housing and utilities (3.3% vs 3.2%). Meanwhile, inflation eased for food and non-alcoholic beverages (2.1% vs 2.2%) and recreation and culture (1.5% vs 2.4%). Core inflation, which excludes volatile components such as energy and unprocessed food, remained unchanged at 2.6%. The EU-harmonized inflation rate accelerated to 3.6%, its highest level since May 2024 and well above the European Central Bank’s 2% inflation target.