Portugal

Banco de Portugal sees inflation from 2027 upwards to 2.4%

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 07/10/2026, 10:11:24 UTC.

Briefings

The Banco de Portugal revised its inflation forecast for Portugal upward to 2.4% in 2027, a significant increase from the previous 2.2% target. This revision was driven primarily by a 10.5% rise in energy prices in 2026, with the peak inflation expected in late 2026 before moderating over the next two years. The central bank also noted that the current energy shock had a more contained impact on inflation compared to the 2022 Ukraine invasion, though geopolitical tensions remain a key risk factor.

Key points

• The Banco de Portugal revised its inflation forecast for Portugal upward to 2.4% in 2027, a significant increase from the previous 2.2% target.
• Inflation in Portugal accelerated to 3.6% in September 2026, driven mainly by a 10.5% increase in energy prices in 2026.

Context

The Banco de Portugal's October 2026 economic bulletin revised 2027 inflation expectations upward to 2.4%, reflecting a 10.5% surge in energy prices in 2026. This revision contrasts with the 2022 Ukraine invasion period, where energy price impacts were more pronounced. The central bank expects inflation to peak in late 2026 before moderating over the next two years, with geopolitical tensions in the Middle East remaining a primary risk factor.

Limitations

The evidence covers inflation projections for Portugal and the Eurozone, with specific focus on 2026-2028. Uncertainty remains high regarding the duration of the energy shock and its transmission to labor costs and wages. The source does not provide data on specific inflation rates for other countries or regions outside Portugal and the Eurozone.

Generated by Bittrees-hosted qwen35-2b sha256:aaf42c8b7c3c on 26/10/2026, 03:51:41 UTC. Based on publisher-provided feed evidence; may not cover the full original article. Check the source for details.

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