Portugal’s annual inflation rate climbed to 2.7% in March 2026, up from 2.1% in February and reaching its highest level since August 2025, according to a preliminary estimate. The surge was primarily driven by a 5.8% jump in energy prices, reversing February’s 2.2% decline, as the Middle East conflict continued to disrupt global energy markets. Processed food prices also accelerated, rising 1.4% (from 0.9% in February), while unprocessed food inflation eased slightly to 6.4% (from 6.7%). Meanwhile, the core inflation rate, which excludes volatile energy and unprocessed food, ticked up to 2% from 1.9%, signaling broadening price pressures.