Cost of living skyrockets and pressures families, reveals Banco de Portugal
Inflation in Portugal reached 4.4% in February and rose to 5.3% a month later, increasing due to the increase in energy and food goods, which means greater pressure on the pockets of families, particularly as poor, evidence of a study published by the Bank of Portugal (BdP).
According to the banking regulator, “food prices” grew by “4.2% in February”. And it is precisely in food that lower-income families will feel the most weight of the economy, considering that food represents a quarter of all family expenses. The situation is exacerbated by the “fact that essential food and energy goods are and therefore the economy not consumed significantly in the face of price increases”, confirms the central bank report. Therefore, either consumption is reduced or an expense is increased.
Despite all this, the numbers still do not show the full impact that the war could have on the next families in time. The estimate by the National Statistics Institute points to a 5.3% rise in the cost of living in March, which, if confirmed, will quickly begin to contribute to overturning the government’s optimism, which in the 2022-2026 Stability Plan forecast “021.23% in 2021 to 2.9% in 2021”.
Basket of essentials rises 10 euros in a month
On March 30, a basket of essential food products costs 10 euros more (+5.45%) than on February 23, the day before the start of the war in Ukraine, according to accounts by Deco, a consumer protection association. In just over a month, the price of the basket went from 183.63 euros (23 February) to 193.63 euros (30 March). At stake are the prices of 63 essential food products, such as turkey, chicken, hake, horse mackerel, onion, potato, orange, apple, carrot, rice or spaghetti.