In 2023, the average rate of change of the Portuguese Consumer Price Index (CPI) was 4.3% (7.8% in 2022). Excluding energy and unprocessed food, the average rate of change was 5.0% in 2023 (5.6% in the previous year). The CPI annual rate decreased throughout 2023, with significant decreases in April and May. These decreases were driven by a base effect related to the price increases registered in 2022, as well as by the price decreases of energy in the first half of 2023 and the exemption of VAT rates of essential food items in effect since May.

The CPI annual rate was 1.4% in December (1.5% in November). The annual core inflation rate, which excludes energy and unprocessed food products components, was 2.6% (2.9% in the previous month). The CPI monthly rate was -0.4% (-0.3% in November 2023 and December 2022).

In 2023, the annual average rate of change of the Portuguese Harmonised Index of Consumer Prices (HICP) was 5.3% (8.1% in 2022). In December 2023, the HICP annual rate of change was 1.9% (2.2% in the previous month). This rate is 1.0 percentage points (p.p.) below the figure estimated by Eurostat for the Euro area (in November, this difference was 0.2 p.p.).  Excluding energy and unprocessed food products, the Portuguese HICP was 3.1% in December (3.6% in November), below the corresponding rate for the Euro area (estimated at 3.9%).