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
Government price controls once again
Citing high food inflation, the government has introduced a new…
Read more >Jerónimo Martins targets 300 store openings in 2025
Portuguese retail group Jerónimo Martins plans to invest EUR 1.1bn…
Read more >Auchan launches sustainable ice cream in Portugal
Auchan Portugal has teamed up with local brand O Gelado…
Read more >Related news
Márton Nagy: the government would introduce margin restrictions for stores selling household goods
The government may discuss on Wednesday and is expected to…
Read more >The Hungarian Food Bank Association is organizing a record-sized food collection on Friday and Saturday
At the Friday and Saturday fundraiser organized by the Hungarian…
Read more >Pick Szeged Zrt.’s profit decreased, but its sales revenue increased last year
Pick Szeged Zrt.’s after-tax profit in 2024 was 6.7 billion…
Read more >