FX.co ★ Portugal Producer Deflation Highest Since 2023

In August 2025, Portugal saw a year-on-year decline in producer prices by 4.3%, marking the most significant drop since November 2023, following a 3.7% decrease in July. This reduction was primarily influenced by decreases in the prices of chemical pulp, paper, and cardboard products, as well as electricity. Notably, the prices of intermediate goods decreased by 4.9% compared to a 3.9% drop previously, energy prices fell by 9.1% relative to a prior 7.5% decline, and non-durable consumer goods saw a 4.4% decrease compared to a 4.3% reduction. When energy is excluded, the prices for industrial production dipped by 3.3%, following a 2.9% decrease. On the flip side, prices for investment goods increased by 1.9%, up from 1.8%, and durable goods witnessed a stable increase of 1.8%. On a month-to-month basis, the Producer Price Index (PPI) registered a decline of 0.6% in August, halting three months of rising trends.