Daily Life: Inflation news in Portugal

Drivers in Portugal are facing sharp fuel price hikes starting Monday, with diesel expected to rise by up to 12 cents and petrol by 9.5 cents per litre. Despite government adjustments to the tax discount on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP), prices are reaching record highs.

Update: Historic fuel price increase expected

Forecasts for the week of September 7 to 13 indicate even higher increases, with some reports suggesting diesel could rise by 15 cents and petrol by 12 cents per litre. If these projections hold, average prices may reach approximately 2.17 euros per litre for diesel and 2.14 euros for petrol, leading many drivers to seek cheaper fuel in neighboring Spain.

The price of a food basket containing 63 essential goods, monitored by the consumer protection association Deco Proteste, dropped by 1.53 euros over the last week. The total cost for the basket is now 252.07 euros.

The cost of a food basket monitored by the consumer protection organization Deco Proteste has increased to 253.60 euros. This latest rise, recorded between July 29 and August 5, adds 12 cents to the price of the 63-item set. Consumers have faced consistent price pressure on these essential goods since the beginning of the year.

After nine weeks of falling prices, the cost of a basic food basket monitored by the consumer protection organization Deco Proteste has increased. The basket now costs 257.68 euros, representing a weekly rise of 2.11 euros.

Lisbon is currently the most expensive city in Europe for renters, with the cost of a one-bedroom apartment consuming approximately 99% of the average local salary. This housing crisis is compounded by a significant rise in the cost of living since 2022, with essential food and energy prices frequently outpacing general inflation.

Fuel prices in Portugal are expected to increase significantly starting Monday due to the ongoing conflict in the Middle East driving up global oil costs. Diesel prices are projected to climb by 9.5 cents per liter, while gasoline is expected to rise by 6 cents, pushing diesel costs back above the 2-euro-per-liter mark.

The cost of an essential food basket containing 63 products has reached a new record of 260.89 euros, according to the consumer protection organization Deco Proteste. This marks the seventh consecutive week of price increases, with the basket becoming 1.37 euros more expensive than the previous week. The current price is the highest recorded since the organization began monitoring these costs in January 2022.

The cost of an essential basket of 63 products has reached a new record of 259.52 euros, according to data from the consumer protection organization Deco PROteste. This marks the sixth consecutive week of price increases, driven largely by rising energy costs.

Global oil prices have climbed above 100 dollars per barrel following a US-led blockade of the Strait of Hormuz. The move, announced by Donald Trump, aims to restrict Iranian oil revenues amid collapsing diplomatic negotiations. The situation has triggered significant market uncertainty and increased costs for energy and consumer goods in Portugal.

The cost of an essential basket of 63 food products, monitored by the consumer protection association Deco Proteste, has reached a record high of 257.95 euros. This represents an increase of 2.95 euros in just one week, with prices for items like pasta showing significant spikes. The current cost is 37.42% higher than it was four years ago.

Fuel prices are scheduled to rise again this coming Monday across Portugal. Diesel is expected to increase by seven to eight cents per litre, while petrol will see a rise of 2.5 cents per litre.

Fuel prices will rise again on Monday, with diesel increasing by eight cents per litre and petrol by three and a half cents. The increase in diesel will thus exceed 50 cents since the war began, and a 50-litre tank will cost, on average, €26 more than it did a month ago.

Global food prices increased by 2.4% in March, marking the second consecutive month of growth according to the Food and Agriculture Organization (Organização para a Alimentação e a Agricultura or FAO). The rise is primarily attributed to higher energy costs linked to the ongoing conflict in the Middle East. While cereal prices rose by 1.5%, rice prices saw a 3% decline.

Fuel costs in Portugal have risen sharply since the start of the conflict in the Middle East, with diesel prices increasing by 30% and petrol by 14%. A 50-litre tank of diesel now costs approximately 104 euros, up from 80 euros just over a month ago. While the government has extended some tax relief measures, the Bank of Portugal (Banco de Portugal) warns that rising energy costs continue to contribute to economic instability.\n\nUpdate: Diesel prices exceed two euros as sector groups demand support\n\nDiesel prices have risen to 2.232 euros per litre, while petrol prices saw a slight decrease to 1.976 euros. The National Confederation of Agricultural Cooperatives (Confagri) and the National Association of Public Road Freight Carriers (ANTRAM) have both criticized recent government support measures as insufficient to offset rising production costs. Retailers also warned of a significant price increase for gas cylinders (garrafas de gás) starting this Wednesday.

The Bank of Portugal (Banco de Portugal) has revised its 2026 economic growth forecast downward, citing geopolitical instability and recent extreme weather events. While the labor market remains stable, employment growth is expected to slow throughout 2025 due to tighter immigration rules and lower economic growth. Consumers should also prepare for higher costs in the food basket (cabaz alimentar) starting in April as Middle East tensions impact global supply chains.

Update: Portugal records 0.7% budget surplus for 2025

The National Statistics Institute (Instituto Nacional de Estatística or INE) confirmed that Portugal ended 2025 with a budget surplus (excedente orçamental) of 0.7% of GDP, significantly higher than the government's 0.3% forecast. Finance Minister Joaquim Miranda Sarmento stated the result provides important financial security, though opposition parties argue the surplus was achieved at the expense of public services. Taxpayers should be aware that this fiscal performance may influence future government spending on infrastructure and social support.