Portugal's annual inflation rate slowed to 3.0% in July 2026, marking a third straight monthly easing and confirming the preliminary estimate. The deceleration was driven mainly by softer energy inflation, which fell to 8.7% from 9.1%, while goods inflation eased to 2.2% from 2.4% as food price growth slowed to 2.2% from 3.0%. Services inflation also cooled to 4.0% from 4.2%, with lower readings for housing and utilities, transport, and restaurants and hotels. Core inflation (excluding energy and unprocessed food) nonetheless edged up to 2.6% from 2.5%. On a monthly basis, consumer prices fell 0.5% after a 0.1% rise in June. Harmonised inflation (the euro zone comparable measure) was unchanged at 3.1%, leaving it near a two-year high and still above the European Central Bank's 2.0% target.