Restaurants and hotels lead price rises in 2025
The year 2025 confirmed the trajectory of slowing inflation in Portugal, with the Consumer Price Index (CPI) at 2.3%, the lowest level since 2021. Although food made the largest contribution to the rise in prices, it was restaurants and hotels that led the rate of change...
Inflation slows to 2.3% in 2025
INE confirmed annual inflation eased to 2.3% in 2025, a 0.1 percentage‑point drop from 2024; food was the largest contributor to price increases over the year. The data come from the Consumer Price Index as compiled by the National Institute of Statistics (Instituto Nacional de Estatística or INE). For residents balancing household budgets, slower headline inflation may ease pressure but food-price rises mean grocery bills remain important to monitor.
The INE is Portugal's National Statistics Institute (Instituto Nacional de Estatística), and its housing price index measures changes in residential property prices used by policymakers, lenders and markets. That index—published regularly with monthly and quarterly releases for different housing statistics—helps legislators assess price trends and justify measures when prices are rising steadily.
The Consumer Price Index (CPI) is a statistical measure that tracks the average change over time in the prices paid by households for a fixed basket of goods and services. Portugal’s statistics office (INE) reported the CPI rose by 2.3% last year (0.1 percentage points less than in 2024), and this figure helps expats understand changes in cost of living, rent indexing and adjustments to wages or benefits.
The National Institute of Statistics (National Institute of Statistics (Instituto Nacional de Estatística, INE) is Portugal’s official body for collecting and publishing data on population, economy and travel; it reported that trips by residents abroad rose 21.9% year-on-year to 975,000 in Q2 2025. Expats can use INE data for planning travel, business decisions or understanding tourism trends in Portugal via its website and published bulletins.
The price of eggs has risen by 32% since January
Traditional seasonal sweets are much more expensive.
