Inflation in Portugal has now reached a 29-year high. The Institute of National Statistics in Portugal (INE) confirmed that the year-on-year change in the consumer price index (CPI) was 7.2% in April, up from 5.3% in the previous month and the highest since March 1993. 

The Bank of Portugal has also warned that inflation is already spreading throughout the Portuguese economy. The underlying inflation indicator (total index excluding unprocessed food and energy products) also accelerated, registering inflation of 5.0% (3.8% in March), which was the highest value since September 1995.

The change in the energy products index rose to 26.7% in April, from 19.8% in the previous month, which corresponds to ‘the highest value since May 1985’. 

According to INE, the sectors with the highest rates of inflation in Portugal today are housing, water, electricity, gas and other fuels, and restaurants and hotels.