Lisbon, March 31, 2026 (Lusa) - Portugal's inflation rose to 2.7% in March, according to a flash estimate released on Tuesday by the National Statistics Institute (INE).

The year-on-year change in the Consumer Price Index (CPI), which measures the average price change of goods and services over time, is 0.6 percentage points higher than the rate recorded in February, the institute said.

The statistics office noted that the increase "is almost entirely explained by the rise in fuel prices" in March, reflecting higher oil prices.

The index for energy products reached 5.8%, following a 2.2% drop in February.

This rise in fuel prices coincides with the impact of the war in Iran at the end of February and the subsequent closure of the Strait of Hormuz. Around 20% of global oil production and nearly 20% of liquefied natural gas (LNG) pass through the strait.

Core inflation, which excludes unprocessed food and energy products, recorded a change of 2% in March. This rate is 0.1 percentage points higher than the figure for February.

Unprocessed food prices slowed from a 6.7% increase in February to 6.4% in March.

Similar to the CPI, Portugal’s Harmonised Index of Consumer Prices (HICP), used for comparisons with other European countries, recorded a year-on-year change of 2.7% in March, compared to 2.1% in February.

The institute reported a month-on-month rise of 2%, compared to 0.1% in February and 1.4% in March.

INE estimated that the average change over the 12 months ending in March was 2.3%, matching the level seen in February.

Final CPI data for March will be published on 13 April.

JO/LYT // AYLS

Lusa