FX.co ★ Portugal Inflation Rate Steady at 7-Month Low of 2.2%

In December 2025, Portugal's annual inflation rate remained steady at 2.2%, marking a seven-month low, according to preliminary estimates. Energy prices decreased further, dropping by 2.4% compared to a 0.8% decline in November. Processed food inflation also showed signs of easing, moving to 0.9% from 1.2% in the previous month. Conversely, the index for unprocessed food experienced a 6.0% increase, consistent with November's rate. The core inflation index, which excludes the volatile categories of energy and unprocessed food, saw a slight rise to 2.1% from November's 2%. Furthermore, the EU-harmonized index of consumer prices (HICP) edged up to 2.4% from 2.1%, surpassing the European Central Bank’s target midpoint. On a monthly scale, consumer prices increased by 0.1%, a change from the 0.3% decline observed the previous month. The average inflation rate for 2025 slowed to 2.3%, down from 2.4% in 2024.