Inflation in Portugal is putting the squeeze on household budgets as it hits the highest level since 1993.
According to Portugal’s national statistics institute (INE), inflation climbed to 7.2% in April and 8% in May.
“The underlying inflation indicator (total index excluding non-processed food and energy products) registered a variation of 5.6% (5.0% on April), posting the highest amount since October 1994”.
“It is estimated that the like-for-like variation rate for energy products is at 27.2% (26.7% in April), the highest level since February 1985, while the index for non-processed food products shows a variation of 11.7% (9.4% in April).
The figures were released this week as news from the markets emerged that petroleum prices went up by 2% to $US120 a barrel after the EU agreed to ban imports of two-thirds of Russia’s fossil fuel exports and forecasts a gradual reduction on reliance on Russian oil and gas by the end of the year.
And there will be a fresh round of increases in petrol and diesel for motorists for the week 30 May to 5 June.
Petrol will go up 2 cents per litre while diesel will climb 3 cents a litre according to forecasts from AWAY.
The Ministry of Finances states, however, that fuel tax ISP would fall 0.5 cents on diesel. The Portuguese government’s offset mechanism means a fall of 24.5 cents/litre of petrol and 21.5 cents/litre on diesel on the taxable share of each litre.
According to data from the DGEC, the average price of petrol 95 is €2.029 per litre and €1.759 per litre of diesel as of 31 May 2022.
Source: Essential Business