Portugal’s annual inflation rate rose to 3.8% in October 2026, its highest level since May 2023, up from 3.6% in September and in line with preliminary estimates. This was the third consecutive monthly increase. Energy inflation accelerated to 17.4% from 15.3%, while price growth also strengthened for transport (8.3% vs 8.2%) and housing and utilities (4% vs 3.4%). Inflation for unprocessed food stood at 3.7%. Core inflation, which excludes volatile components such as energy and unprocessed food, inched up to 2.8% from 2.7%.
Additional upward pressure came from faster price increases in food (2.5% vs 2.4%), financial and insurance services (2.9% vs 2.8%), restaurants and hotels (7.9% vs 7.3%), and recreation and culture (2.6% vs 0.7%). The EU-harmonized inflation rate accelerated to 3.9%, its highest level since May 2024 and well above the European Central Bank’s 2% target. On a monthly basis, consumer prices rose 0.2%, easing from a 1.2% increase in September.