Portugal’s annual inflation rate rose to 3.8% in October 2026 from 3.6% in September, reaching its highest level since May 2023, according to a preliminary estimate. Core inflation, excluding unprocessed food and energy, is expected to increase to 2.8% from 2.7%. Energy inflation is forecast to accelerate to 17.4% from 15.3%, its highest level since December 2022, while unprocessed food inflation held steady at 3.7%. The annual EU-harmonised inflation rate climbed to 3.9% from 3.6%, its highest level since May 2024 and well above the European Central Bank’s 2% target. Consumer prices rose 0.2% month on month, slowing from a 1.2% increase in September.