Finance: Inflation news in Portugal

The Police Professionals' Trade Union Association (Associação Sindical dos Profissionais da Polícia or ASPP/PSP) warned that the salary adjustments in the 2027 State Budget (Orçamento do Estado) fail to compensate for recent inflation. The union argued that the proposed 2.3% adjustment only matches projected inflation rates without restoring lost purchasing power for members of the Public Security Police (Polícia de Segurança Pública or PSP). ASPP/PSP is calling on lawmakers to introduce a formal safeguard clause during parliamentary budget debates.

Chega has two bills in Parliament to lower fuel VAT to 13% and apply zero VAT to a basket of essential food items. The PS advocates for the same goals but through recommendations to the Government, while the IL has already managed to pass a resolution to reduce the ISP. Meanwhile, the Government is focusing on relief...

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.

The European Central Bank (ECB) is meeting in Frankfurt to decide on monetary policy, with investors anticipating a potential pause in interest rate hikes. Officials are closely monitoring the recent rise in oil prices, which remains a primary concern for inflation forecasts and future economic stability.

European Central Bank (Banco Central Europeu or BCE) President Christine Lagarde warned that the eurozone's economic situation remains fragile due to the Middle East conflict. Despite this, she defended the recent interest rate hike to 2.25 percent as a solid measure. Lagarde also stated that the central bank does not need new monetary policy responses to address inflation driven by the conflict, noting that the bank cannot resolve geopolitical issues like the closure of the Strait of Hormuz.

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.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+ (OPEP+), have decided to increase oil production by 188,000 barrels per day starting in July. This adjustment is intended to help stabilize global oil markets following a period where prices finished the week below 100 dollars.

The Governor of the Banco de Portugal (Banco de Portugal or BdP), Álvaro Santos Pereira, has expressed support for an interest rate increase at the next European Central Bank (Banco Central Europeu or ECB) meeting in June. Citing the need to act quickly against potential inflationary spirals, the governor noted that while the economy remains resilient, inflation remains a primary concern.

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.

Eurostat data shows Portugal experienced one of the highest monthly inflation increases in the Eurozone during April, rising by 1.9%. Experts suggest that volatility in international oil markets, particularly tensions near the Strait of Hormuz, is contributing to higher energy and food costs for families.

Socialist Party (Partido Socialista or PS) Secretary-General José Luís Carneiro has invited Prime Minister Luís Montenegro to visit local markets to witness the impact of rising living costs. Carneiro accused the Chega party of acting as a political 'crutch' for the government while criticizing the rejection of PS proposals to reduce taxes on essential goods.

Fuel prices are set to increase this Monday, with diesel rising by approximately 10 cents and petrol by 6.5 cents per litre. In response, the Socialist Party (Partido Socialista or PS) has renewed its call for the government to lower the value-added tax (Imposto sobre o Valor Acrescentado or IVA) on fuel from 23% to 13%. Meanwhile, the price of a 13kg bottle of butane gas has reached a record 39 euros, further impacting household budgets.

Socialist Party (PS) Secretary-General José Luís Carneiro has accused Prime Minister Luís Montenegro of being disconnected from the reality of rising living costs. Carneiro argued that recent budget execution data should serve as a warning sign for the government, despite the Prime Minister's claims that there is no cause for alarm.

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 trade union federation CGTP is demanding urgent government intervention to control the prices of essential goods and fuel. The union reports that the cost of living has risen significantly, placing a heavy burden on workers and pensioners.

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 in Portugal are set to increase again on Monday, with diesel expected to rise by up to nine cents per litre and petrol by up to four cents. Despite the government applying a new discount to the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP), international market volatility continues to drive costs higher. This marks the fifth consecutive week of rising prices linked to the ongoing conflict in the Middle East.

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 National Association of Fuel Retailers (Associação Nacional de Revendedores de Combustíveis) expects a slight drop in diesel and petrol prices starting Monday. However, the ongoing conflict in the Middle East has caused Brent oil prices to fluctuate, making final costs at the pump difficult to predict. Some analysts are calling for a reduction in the 23% VAT (IVA) on fuel to provide relief to households facing high living costs. Drivers should check local station prices early next week for potential savings.

Update: Government approves €150 million monthly fuel support package

The government approved a 10-cent-per-liter subsidy for exposed sectors including taxis, agriculture, firefighters, and freight transport. Prime Minister Luís Montenegro rejected calls for a VAT reduction on fuel or food, stating the country must maintain its status of financial stability. Those in the transport and agricultural sectors should note the support is estimated to cost €150 million per month.

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.

Drivers in Portugal will face a significant increase at the pumps this Monday, with diesel prices expected to rise by 12 cents per liter and petrol by seven cents. The Automobile Club of Portugal (Automóvel Clube de Portugal or ACP) has criticized the government's tax relief measures as insufficient to offset the global price surge. Travelers should note that the state continues to collect substantial revenue through the fuel tax (Imposto sobre os Produtos Petrolíferos or ISP) despite the current crisis.

Conflict between Israel and Iran is impacting Portuguese households through rising energy and food costs. A 50-liter tank of fuel is now 11.75 euros more expensive than before the war, with further risks if the Strait of Hormuz (Estreito de Ormuz) closes. The International Energy Agency warns of a massive global supply drop this month. Residents should note that these pressures may also lead to interest rate hikes.

European Central Bank (Banco Central Europeu or BCE) President Christine Lagarde has promised to do “whatever is necessary” to keep inflation under control. Lagarde noted that while the current situation differs from the 2022 energy crisis, the conflict in the Middle East poses risks to price stability. Taxpayers should be aware that the bank remains vigilant against sudden spikes in energy costs that could impact the cost of living.

The warning was issued by the president of the Eurogroup, Kyriakos Pierrakakis.