The annual inflation rate in Portugal rose to 2.6% in July 2025 from 2.4% in June, according to a preliminary estimate. This marks the highest level since December, largely driven by a sharp increase in food prices. Unprocessed food inflation accelerated to 6.2% (from 4.7%), while processed food prices rose by 1.3% (the same as in June). In contrast, energy prices fell by 1.1% (vs -1.3%). The core inflation index, which excludes energy and unprocessed food products components was unchanged at 2.4%, the same as in the previous month. Meanwhile, the EU-harmonized index of consumer prices (HICP) climbed to 2.5% from 2.1%.