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Portugal’s annual inflation rate rose to 2.8% in August 2025 from 2.6% in July, the highest since December 2024. The increase was driven by food prices, which climbed 4.0%—their fastest pace since October 2023—along with higher costs for transport (2.1% vs. 1.8%) and restaurants and hotels (7.7% vs. 7.5%). Housing inflation held steady at 2.2%, while prices for miscellaneous goods and services slowed to 1.9% from 2.1%. Core inflation, excluding food and energy, eased slightly to 2.4% from 2.5%. Meanwhile, the EU-harmonized consumer price index (HICP) advanced 2.5% in August, remaining above the European Central Bank’s 2% target.