Portugal’s annual inflation rate rose to 2.4% in June 2025, up from 2.3% in May, according to a preliminary estimate. This marks the highest level since February, largely driven by a sharp increase in food prices. Unprocessed food inflation accelerated to 4.7% (from 4.0%), while processed food prices rose by 1.3% (from 1.1%). In contrast, energy prices fell by 1.3% year-on-year, reversing a 0.1% increase in the previous month. Core inflation - which excludes volatile components like food and energy—also picked up, rising to 2.4% from 2.2%. Meanwhile, the EU-harmonized index of consumer prices (HICP) climbed to 2.1% from 1.7%, pushing above the European Central Bank’s 2% midpoint target.