Portugal's annual inflation rate edged down to 3.0% in July 2026, easing for a third consecutive month, according to a preliminary estimate. The slowdown was driven by softer energy inflation, which eased to 8.7% from 9.1%, and slower food price growth, with unprocessed food inflation falling to 3.7% from 5.1%. However, underlying price pressures strengthened, as core inflation, which excludes energy and unprocessed food, rose to 2.6% from 2.5%. Meanwhile, the EU-harmonized inflation rate remained unchanged at 3.1%, hovering near its highest level in two years and staying well above the European Central Bank's 2.0% target.