Portugal inflation rises to 3.8%, highest since May 2023

Portugal’s annual inflation rate rose to 3.8% in October, up 0.2 percentage points from the previous month and the highest reading since May 2023, according to a flash estimate published by the national statistics office INE. The increase points to renewed price pressure in the Portuguese economy.

October marked the third straight monthly increase in inflation after a slowdown between April and July. If confirmed, the 3.8% reading would be the strongest annual rise in consumer prices in more than three years. INE said energy product prices rose 17.4% year-on-year, up from 15.3% in September, while unprocessed food prices increased 3.7%, unchanged from the previous month.

Core inflation, which excludes unprocessed food and energy, is estimated to have reached 2.8% in October, 0.1 percentage points above September. On a monthly basis, consumer prices rose 0.2%, compared with 1.2% in September, while the average inflation rate over the past 12 months was estimated at 2.9%, up from 2.8%.

Portugal’s harmonised inflation rate, the measure used for comparison across the European Union, is estimated at 3.9% in October, up from 3.6% in September. October data for the euro area and the EU were not yet available, but euro zone inflation stood at 3.8% in September.

Originally published at Eco.pt