Portugal To Extend Subsidy To Help Poorest With Food Inflation
Portugal will extend until September a subsidy of €60 a month to help the poorest families cope with food inflation, Prime Minister Antonio Costa has said. Speaking in parliament, Costa said the three-month extension to the subsidy launched in April would benefit 10% of the country’s population of 10 million people.

Portugal’s favourite: Pastel de nata
Around 900,000 Portuguese take home the national minimum wage of €705 per month, the lowest in western Europe. Portuguese consumer prices spiked 8% year-on-year in May, at their fastest pace since February, 1993, with energy prices rising 27.2% and unprocessed food increasing 11.7%. Earlier this year, certain products were rationed in Portuguese supermarkets, due to the Ukraine conflict impacting suppliers.
In April, Portugal reduced a special tax levied on fuel, offsetting around half the increase in the price of diesel that has occurred since October 2021 and 74% of the gasoline price rise. Portugal and Spain a week ago began to subsidise fossil fuel power plants’ generation costs, under a scheme designed to lower electricity prices for consumers and industry. The mechanism is expected to cost Portugal €2.1 billion. The government is also paying 30% of the increase in gas costs energy-intensive industry such as cement and steel is experiencing compared to 2021. Agricultural companies are also exempt from paying VAT on fertilisers and feed.
Consumers, companies and industry groups say the measures are not enough to help them cope with the spike in prices.
ESM
Related news
Help is coming from many sources for livestock owners affected by foot-and-mouth disease
The government is committed to supporting the restart and maintenance…
Read more >OKSZ’s assessment of food inflation
“The higher-than-expected price increase of food products (4.6 percent even…
Read more >The price of several basic foods has increased, and the price of potatoes has skyrocketed in discount stores
Privátbankár measured minimal price increases in domestic discount chains at…
Read more >Related news
Danone lines up yogurt facility expansion amid “explosive growth” in US
The Activia brand owner has made a “multi-million dollar investment”…
Read more >Denmark plans to scrap taxes on coffee, confectionery
The complete removal of taxes on coffee and confectionery is…
Read more >Katalin Neubauer: margin stop and mall stop do not serve the interests of retail
The government has extended the margin cap and tightened the…
Read more >