Portugal preliminary Feb. consumer prices rise 2.1 y/y

Portugal preliminary Feb. consumer prices rise 2.1 y/y

Portugal’s Preliminary February Consumer Prices Rise 2.1% Year/Year
Portugal’s annual inflation rate stood at 2.1% in February 2026, according to preliminary estimates from the National Statistics Institute (INE). This marks a slight deceleration from the 2.2% recorded in December 2025 and follows a seven-month low of 1.9% in January 2026. The latest data reflects continued moderation in price pressures, driven by declining energy costs and softer food inflation.

Energy prices remained a key factor, falling by 2.2% year-over-year in February, compared to a 2.4% decline in December. Unprocessed food inflation eased to 5.8% from 6.1%, while processed food inflation dropped to 0.8% from 1.0%. Core inflation, which excludes energy and unprocessed food, moderated to 1.8% in February, down from 2.1% in January. This suggests broader disinflationary trends across the economy.

The EU-harmonized Harmonized Index of Consumer Prices (HICP) also declined to 1.9% in February, down from 2.4% in December, remaining below the European Central Bank’s 2% target. On a monthly basis, consumer prices rose 0.1% in February, unchanged from January’s revision.

Year-to-date averages highlight a gradual cooling in inflationary pressures, with the annual average for 2025 at 2.3%, down from 2.4% in the prior year. Sector-specific trends showed mixed results, with transportation inflation easing to 0.9% from 2.0% in December, while accommodation and food services continued to exert modest upward pressure.

The latest figures reinforce expectations of sustained disinflation, though policymakers remain cautious about potential risks from global energy markets and domestic demand dynamics. Further updates will be critical as Portugal navigates its economic recovery trajectory.

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