Annual consumer price growth slowed for a third straight month, but core inflation edged higher and the EU-harmonized rate stayed at 3.1%, remaining above the European Central Bank's 2.0% target.
Portugal’s annual inflation rate slowed to 3.0% in July 2026, easing for a third consecutive month, according to a preliminary estimate. The moderation 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%. Underlying price pressures strengthened slightly, however, as core inflation, which excludes energy and unprocessed food, rose to 2.6% from 2.5%. Meanwhile, the EU-harmonized inflation rate was unchanged at 3.1%, hovering near its highest level in two years and remaining well above the European Central Bank’s 2.0% target.