Portugal’s annual inflation rate edged down to 3.0% in July 2026, easing for a third consecutive month and confirming the preliminary estimate. The slowdown was driven mainly by softer energy inflation, which fell to 8.7% from 9.1%. Goods inflation eased to 2.2% from 2.4%, reflecting slower food price growth (2.2% vs 3%), while services inflation declined to 4% from 4.2%, led by lower inflation for housing and utilities (3.2% vs 3.6%), transport (4.9% vs 5.5%), and restaurants and hotels (6% vs 6.2%). Inflation stood at 1.8% for furnishings and 4.4% for education. On a monthly basis, consumer prices fell 0.5% after rising 0.1% in June. Meanwhile, harmonised inflation held at 3.1%, near a two-year high and above the ECB’s 2% target.