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Portugal's consumer price inflation eased to 1.9% year-on-year in March 2025, down from 2.4% in February, slipping below the European Central Bank’s 2% target for the first time since August 2024. The slowdown was driven by softer price increases in housing and utilities (3.5% vs 3.7%), transportation (0.1% vs 1.3%), and recreation and culture (2.5% vs 3.8%). Notably, clothing and footwear prices declined (-1.1% vs +2.5%). Inflation held steady for both food and non-alcoholic beverages (1.6%) and miscellaneous goods and services (2.4%), while it edged up slightly for restaurants and hotels (5.2% vs 5.1%). Core inflation, which excludes unprocessed food and energy, fell to 1.9%, its lowest level since December 2021. On a monthly basis, consumer prices rose by 1.4% in March, rebounding from a 0.1% drop in the previous month.