Data published by the European Union (EU) statistical office reveals that, in the first month of 2025, in the EU as a whole, annual inflation (measured by the harmonised consumer price index) was 2.8% in January 2025, compared with 2.7% in December 2024 and 3.1% in the first month of last year.

In January 2025, Portugal recorded an annual inflation rate of 2.7% (above the eurozone and EU averages), down from 3.1% in December 2024 and up from 2.5% in January 2024.

Among the 27 EU countries, in terms of quarter-on-quarter changes, the highest annual rates were recorded in Hungary (5.7%), Romania (5.3%) and Croatia (5.0%), while the lowest were recorded in Denmark (1.4%), Ireland, Italy and Finland (all with 1.7%).

Also compared to December 2024, annual inflation decreased in eight Member States, remained stable in four and increased in 15, according to Eurostat.

The statistical office says that in January 2025, the largest contribution to the eurozone's annual inflation rate is related to the services sector (+1.77 percentage points, pp), followed by food, alcohol and tobacco products (+0.45 pp), energy (+0.18 pp) and non-energy industrial products (+0.12 pp).

The European Central Bank has set a 2% inflation target for price stability and hopes to return to this rate, after historic levels related to COVID-19 and the energy crisis, this year.