FX.co ★ Portugal’s Inflation Hits Highest Since August 2025

Portugal’s annual inflation rate rose to 2.7% in March 2026, up from 2.1% in February, marking its highest level since August 2025, according to a preliminary estimate. The increase was largely driven by a 5.8% surge in energy prices, which reversed a 2.2% decline in February, as the ongoing conflict in the Middle East continued to disrupt global energy markets. Processed food prices also gained momentum, rising 1.4% after a 0.9% increase in February, while inflation for unprocessed food eased slightly to 6.4% from 6.7%. At the same time, core inflation—which excludes energy and unprocessed food due to their volatility—edged up to 2% from 1.9%, indicating that price pressures are becoming more broad-based.