FX.co ★ Portugal Producer Price Deflation Gains Pace

In March 2025, Portugal experienced a 1.4% decline in producer prices compared to the same month the previous year. This marked the third consecutive month of deflation and followed a revised decrease of 0.2% in February. The decline was largely attributed to reduced costs of non-durable consumer goods, which fell by 3%—a slight improvement from February's 3.3% decline—mainly influenced by a significant drop in olive oil production expenses. Further contributing to the downward trend were lower prices in the energy sector (down 1.4% from February’s 5.7% increase) and intermediate goods (down 1.2% from 1.3% in February). In contrast, prices for durable consumer goods rose by 3.2%, slightly up from February's 3.1%, and capital goods saw an increase of 0.8%, albeit lower than the previous month's 1.3%. Excluding the energy sector, industrial production prices mirrored the overall trend with a 1.4% drop, consistent with the decline seen in February. On a month-to-month basis, producer prices saw a decrease of 1.3% in March, following a 0.3% rise in the preceding month.