Portugal Producer Inflation Accelerates to Over Three-Year High

Industrial producer inflation in Portugal accelerated to 5.1% year-on-year in May 2026, marking the highest increase since February 2023, following a 3.8% rise in April. The increase was driven primarily by energy prices, which surged 19.5%, up from 17.2% in the previous month. Inflation also accelerated for intermediate goods (4.2% vs. 2.2%), while prices for non-durable consumer goods edged up 0.3% after remaining unchanged in April. Meanwhile, price growth for capital goods eased to 1.5% from 2.2%, while inflation for durable consumer goods stood at 1.6%. On a monthly basis, industrial producer prices increased 1.0% in May, following a 2.4% rise in April.

Industrial producer prices in Portugal jumped 3.8% year-on-year in April 2026, the biggest rise since March 2023, following a flat reading in the previous month. The largest upward contribution came from a 17.2% jump in energy costs, mostly petroleum products due to the impact of the war with Iran. Excluding energy, producer prices were up 1.4%. Other increases were also seen in prices for intermediate (2.3% vs 0.3%) and investment (2.1% vs 1.4%) goods while consumptions goods rose 0.1% only (vs -0.7%). Compared to the previous month, the PPI jumped 1.4%, also led by energy costs which soared 10.2%.

Producer prices in Portugal were flat year-on-year in March 2026, snapping a streak of fifteen consecutive monthly declines, following a 3.0% drop in February. Energy prices drove the shift, falling just 0.6% compared with a sharp 18.8% decline the previous month, amid rising oil prices linked to the conflict involving Iran. Notably, both refined petroleum products and electricity increased by around 20% relative to February. Consumer goods prices continued to decline, down 0.7% year-on-year (vs -0.6% in February). Meanwhile, investment goods prices rose 1.6%, the same as in the previous month, and intermediate goods prices edged up 0.3%, rebounding from a 0.6% fall in February. On a monthly basis, producer prices jumped 2.3%, the strongest increase since May 2022, reversing a 1.1% decline in February, largely driven by a 12% surge in energy prices.