FX.co ★ Portugal Inflation Rate Eases Further in July

Portugal’s annual inflation rate eased to 3.0% in July 2026, declining for the third consecutive month and in line with the preliminary estimate. The moderation was largely driven by a slowdown in energy inflation, which edged down to 8.7% from 9.1%. Inflation for goods also softened, to 2.2% from 2.4%, reflecting weaker food price growth (2.2% vs 3.0%). Services inflation decreased to 4.0% from 4.2%, led by lower price pressures in housing and utilities (3.2% vs 3.6%), transport (4.9% vs 5.5%), and restaurants and hotels (6.0% vs 6.2%).

By contrast, core inflation—excluding energy and unprocessed food—ticked up slightly to 2.6% from 2.5%. On a monthly basis, consumer prices fell 0.5% in July after a 0.1% increase in June. Meanwhile, the harmonised index of consumer prices remained unchanged at 3.1%, hovering near a two-year high and staying above the European Central Bank’s 2.0% target.