Inflation in the Autonomous Region of the Azores slowed to 2.08% in January 2026, down from 2.13% in December and below the national rate of 2.28%. The figures, released by the Azores Regional Statistics Service (SREA) in its January bulletin, show a modest but steady cooling in consumer prices across the archipelago, as measured by the 12-month average rate of change in the Consumer Price Index (CPI). On a year-over-year basis, the regional CPI (“total”) rose 1.90%, a decline of 0.17 percentage points from the previous month and nearly aligned with the national figure of 1.92%. Month to month, prices in the Azores fell 0.28% in January, while mainland Portugal recorded a steeper monthly decline of 0.71%.

Core Inflation and Key Components

Underlying inflation—excluding unprocessed food and energy—posted a 12-month average increase of 1.55% in the Azores, down slightly from 1.59% in December. The data reveal diverging trends within essential categories.

Prices for unprocessed food accelerated, rising 4.54% on average over the past year, up from 4.27% the month before. Energy prices, by contrast, showed moderation, with their 12-month average slowing to 4.67% from 5.15%. These shifts suggest that while broader inflationary pressures are easing, food costs remain a persistent strain for households.

Sector-by-Sector Breakdown

Over the past 12 months, the sharpest average price increases were recorded in:

  • Restaurants and hotels: +7.30%
  • Housing, water, electricity, gas, and other fuels: +4.67%
  • Health: +4.10%

On the other end of the spectrum, average price declines were seen in:

  • Information and communication: -2.51%
  • Clothing and footwear: -1.00%
  • Recreation, sports, and culture: -0.09%

Looking specifically at year-over-year changes by sector, the most pronounced increases occurred in restaurants and accommodation services (5.89%), education services (3.70%), and health (3.40%). The steepest declines were registered in information and communication (-2.35%), alcoholic beverages and tobacco (-1.25%), and recreation and culture (-1.24%).

Monthly Drivers

On a monthly basis, SREA identified food and non-alcoholic beverages as the strongest upward influence, contributing a 1.77% increase. Meanwhile, clothing and footwear exerted the most significant downward pressure, plunging 14.23%—a seasonal adjustment that helped drive the overall monthly decline of 0.28%.

The January data point to a cautiously stabilizing price environment in the Azores. Inflation remains above the European Central Bank’s long-term target but continues to trend downward, offering tentative relief to consumers after years of elevated costs. In an island economy particularly sensitive to import prices and energy fluctuations, even incremental moderation carries weight.

In Diário Insular-Paulo Vivieiros, director.

Translated into English as a community outreach program by the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL), in collaboration with Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno. PBBI thanks Luso Financial for sponsoring NOVIDADES.