How will the wage increase affect purchasing power in Portugal?

An analysis carried out by the newspaper Expresso, which looked at 46 products and services, revealed that almost half of them saw their prices rise faster than wages.

This was particularly clear in the food sector, where 17 of the 24 products examined became considerably more expensive in relation to average incomes.

The most significant increases in food prices were seen in dried and smoked fish—particularly cod, the price of which more than doubled over a five-year period (that is, an annual rise of 25%)—and in eggs, which increased by 86%. Milk, potatoes and meat also rose by approximately 50%.

Support schemes

On the other hand, rental prices for housing increased at a rate similar to that of wages, whereas the costs of day care and public transport decreased since government support schemes and policies had made these services free.

The economic situation remains difficult, with inflation rising year on year to 3.6% in September as a result of higher fuel prices.

The Bank of Portugal expects inflation to stay away from 2% until 2028.