Portugal’s annual inflation rate accelerated to 3.3% in August 2026, up from 3.0% in July, reaching its highest level since April. The increase was driven primarily by a sharp acceleration in transport prices, which rose 6.4% year-on-year, compared with 4.9% in July, largely reflecting higher fuel costs amid escalating tensions in the Middle East. Additional pressure came from miscellaneous goods and services (4.5% vs 4.1%), financial and insurance services (3.1% vs 2.6%), restaurants and hotels (6.2% vs 6.0%), and housing and utilities (3.3% vs 3.2%). Meanwhile, inflation eased for food and non-alcoholic beverages (2.1% vs 2.2%) and recreation and culture (1.5% vs 2.4%). Core inflation, which excludes volatile components such as energy and unprocessed food, remained unchanged at 2.6%. The EU-harmonized inflation rate accelerated to 3.6%, its highest level since May 2024 and well above the European Central Bank’s 2% inflation target.