Portugal’s consumer price index rose 3.3% year-on-year in August, accelerating from 3% in July, according to the latest official data. Prices also increased month-on-month, indicating that inflationary pressure remains embedded in the economy. Food and non-alcoholic beverages, housing, water, electricity and gas, energy, and services such as restaurants and tourism contributed to the increase. Portugal’s inflation rate remained below the eurozone average of 2.6% in July, although the gap was narrowing. The higher reading raises pressure on household purchasing power and supports a cautious stance from the European Central Bank (ECB), which targets 2% inflation across the eurozone. Economists will monitor upcoming data to determine whether August’s acceleration is temporary or develops into a sustained trend.