FX.co ★ Portugal Slips Into Deflation as July CPI Falls 0.5% Month-on-Month

Portugal’s consumer prices moved into negative territory in July 2026, with the country’s CPI declining by 0.5% month-on-month, according to data updated on 31 July 2026. The reading marks a sharp reversal from June 2026, when prices had inched up by 0.1% over the previous month.

The month-on-month comparison shows that the modest inflationary pressure seen in June has not only faded but turned into a notable price contraction in July. With the latest figure now below zero, the focus for markets and policymakers will likely shift to whether this downturn in prices is temporary or the beginning of a more persistent deflationary trend.