Why Does the Market Basket Continue to Burn Money in Portugal?

Kitchen costs in Portugal are rising unabated, almost twice as fast as the European average.

According to the latest July data, the price increase in the food, beverage and tobacco group in Portugal reached 2.3%. Considering that the Eurozone average is 1.2%, the gap is quite remarkable.

We Rank Third Across Europe

With this increase in food inflation, Portugal; It became the third country in the Eurozone where food became expensive the fastest, right after Cyprus (3.8%) and Luxembourg (3.3%).

In fact, this situation is not an instantaneous jump; Since July 2025, that is, for exactly one year, food prices in Portugal have been above the block average. While the share of kitchen shopping in the family budget is already clear, this directly makes it difficult to make ends meet.

Situation in General Inflation and Energy Prices

The annual inflation rate across the country has remained stable at 3.1% for the last three months. We are just above the Eurozone average of 3%. We rank 12th among 27 European Union countries.

On the other side of the coin, there is a pleasing detail, albeit a small one: Despite the tension in global markets and the pressure on oil prices, energy inflation in Portugal slowed down for the second month in a row, falling to 9.5% and falling below the Eurozone average (10.3%). However, the 3.9% increase in the services sector shows that the general price pressure continues.

In short, despite the partial relief in energy, we will have to wait a little longer to breathe easy on the kitchen expenses that bear the brunt.

Source: Expresso (Martin Galvão)

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