FX.co ★ Portugal’s Inflation Highest Since September 2023

Portugal’s annual inflation rate stood at 3.3% in April 2026, slightly below the preliminary estimate of 3.4%, but still the highest level since September 2023 and well above the European Central Bank’s 2% target. The increase was largely driven by an 11.7% surge in energy prices, as the war involving Iran and the closure of the Strait of Hormuz pushed energy costs higher.

Food and non-alcoholic beverages also exerted upward pressure, with prices rising 4.4% year-over-year, up from 3.7% in the previous period. Within this category, unprocessed food prices climbed 7.5%, compared with 6.4% previously. In contrast, services inflation eased slightly to 3.2%, down from 3.4%.

On a monthly basis, consumer prices increased by 1.3% in April, following a 2% jump in March. The EU-harmonized index of consumer prices rose 3.3% year-over-year, the highest rate since May 2024, and 1.9% month-over-month.