Portugal Producer Deflation Softens

Producer prices in Portugal fell 2.1% year-on-year in January 2026, marking the smallest decline in ten months, following a 3.3% drop in December. Energy prices continued to decrease sharply (-8.4% vs. -8.3%), mainly due to lower petroleum product prices, while smaller declines were recorded for consumer goods (-1.0% vs. -2.8%) and intermediate goods (-1.6% vs. -3.3%). Meanwhile, investment goods prices rose 1.8%, up from 1.6% in the previous month. On a monthly basis, the PPI edged down 0.1%, after increasing 0.3% in December.

Producer prices in Portugal fell 3.2% year on year in December 2025, marking the 12th consecutive month of producer deflation and easing slightly from November’s 3.4% decline. Costs fell at a slower pace for energy (-8.4% vs. -9.4%), intermediate goods (-3.3% vs. -3.5%), and non-durable consumer goods (-3.0% vs. -3.1%). Meanwhile, prices for consumer durables rose at a faster pace (2.2% vs. 2.1%), while inflation for capital goods eased (1.7% vs. 2.5%). On a monthly basis, producer prices increased by 0.4%, following a 0.2% decline in November.

Producer prices in Portugal fell 3.3% year-on-year in November 2025, from a 2.8% decline in the previous month. This marked the eleventh consecutive month of producer deflation, driven mainly by a significant drop in energy prices (-9.4% vs -3% in October). Meanwhile, producer deflation eased for consumer goods (-2.5% vs -3.2%), non-durable consumer goods (-3% vs -3.7%), and intermediate goods (-3.4% vs -4.4%). In addition, price growth accelerated for consumer durables (2.1% vs 2%) and capital goods (2.5% vs 2.1%). On a monthly basis, producer prices fell 0.1%, reversing a 0.3% increase in October 2025.