Portugal’s annual inflation rate rose to 3.8% in October 2026, its highest level since May 2023, up from 3.6% in September, according to a preliminary estimate. Core inflation, which excludes unprocessed food and energy, is expected to edge up to 2.8% from 2.7%. Energy inflation is also forecast to accelerate to 17.4% from 15.3%, its highest level since December 2022, while unprocessed food inflation remained unchanged at 3.7%. Meanwhile, the annual EU-harmonised inflation rate climbed to 3.9% from 3.6%, reaching its highest level since May 2024 and remaining well above the ECB’s 2% target. On a monthly basis, consumer prices rose 0.2%, slowing from a 1.2% increase in September.