FX.co ★ Portuguese CPI Dips to 2.5% in January 2025 amid Economic Stabilization

Portugal's Consumer Price Index (CPI) observed a notable cooling at the start of 2025, with January's inflation rate reaching 2.5%. This marks a decline from the 3.0% recorded in December 2024, indicating a continuing trend of economic stabilization in the region. The National Statistics Institute released these figures on January 31, 2025, and they show a clear reduction when analyzed on a year-over-year basis compared to the same months in the previous year.

Economists attribute this deceleration in inflation to several underlying factors, including moderated energy prices and a slight easing in food costs, as well as moderated consumer demand. These factors have provided a counterbalance amid ongoing global economic hesitations and strengthening local fiscal policies aimed at controlling inflation rates.

This downward shift in CPI is expected to have significant advantages for both consumers and policymakers. For the former, a diminished inflationary environment provides relief in purchasing power, while for policymakers, it offers a calm space to refine strategies that can bolster economic growth without triggering adverse inflationary pressures. Portugal looks ahead to continuing on this trajectory as it strives toward sustainable growth and stable economic conditions.