LISBON, Dec. 31 (Xinhua) -- Portugal's annual inflation rate eased to 2.3 percent for 2025, according to a preliminary estimate from the National Statistics Institute (INE) released on Wednesday, coming in slightly below the previous year but above official forecasts.
The 2025 average Consumer Price Index (CPI) increase of 2.3 percent compares with 2.4 percent registered in 2024. The figure exceeds the 2.2 percent inflation rate projected for the year by both the Bank of Portugal and the International Monetary Fund.
In December, consumer prices rose 2.2 percent year on year, while inflation measured by the EU-wide Harmonized Index of Consumer Prices (HICP) increased to 2.4 percent, up from 2.1 percent in November.
Core inflation, which excludes energy and unprocessed food, stood at 2.1 percent. Energy prices fell 2.4 percent, helping ease inflationary pressure, while unprocessed food prices rose 6 percent, continuing to weigh on household budgets.
Portugal's inflation rate remains above the European Central Bank's 2 percent target but shows moderation compared to recent years when price increases reached higher levels following the COVID-19 pandemic and energy crisis.
The slowdown reflects stabilizing energy prices and easing supply chain pressures affecting European economies, though food prices continue showing significant variation affecting household budgets. ■