Inflation at highest level since 1993

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.