The annual inflation rate in Portugal stood at a seven-month low of 2.2% in December 2025, unchanged from November, preliminary estimates showed. Energy prices continued to decline (-2.4% vs -0.8% in November) and processed food inflation eased (0.9% vs 1.2%). Meanwhile, the index for unprocessed food rose 6.0%, matching November's rate. The core inflation index, which excludes energy and unprocessed food products components, edged up to 2.1% in December from 2% in the prior month. Meanwhile, the EU-harmonized index of consumer prices (HICP) inched up to 2.4% from 2.1% previously, sitting above the European Central Bank’s midpoint target. On a monthly basis, consumer prices rose 0.1%, after a 0.3% decrease in the previous month. The average inflation rate decelerated to 2.3% in 2025 from 2.4% a year ago.