Portugal Inflation Rate Holds at Highest Level Since 2023

Portugal’s annual inflation rate rose to 3.8% in October 2026, its highest level since May 2023, up from 3.6% in September, according to a preliminary estimate. Core inflation, which excludes unprocessed food and energy, is expected to edge up to 2.8% from 2.7%. Energy inflation is also forecast to accelerate to 17.4% from 15.3%, its highest level since December 2022, while unprocessed food inflation remained unchanged at 3.7%. Meanwhile, the annual EU-harmonised inflation rate climbed to 3.9% from 3.6%, reaching its highest level since May 2024 and remaining well above the ECB’s 2% target. On a monthly basis, consumer prices rose 0.2%, slowing from a 1.2% increase in September.

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.