Portugal’s annual inflation rate edged up to 3.3% in August 2026, from 3.0% in July, according to a preliminary estimate. The acceleration was mainly driven by a sharp increase in fuel prices, while energy inflation rose to 12.2% from 8.7%. Processed food inflation also edged higher to 1.5% from 1.4%. In contrast, inflation for unprocessed food moderated to 3.4% from 3.7%. Core inflation, excluding energy and unprocessed food, increased to 2.7% from 2.6%, remaining close to its highest level in nearly two years. The EU-harmonized inflation rate accelerated to 3.6%, its highest level since May 2024 and well above the ECB’s 2% target.