Brussels expects inflation in Portugal to rise 8% in 2022 and 5.8% in 2023
These inflation figures are higher than the forecast included in the State Budget for 2023.
The European Commission sees the inflation rate in Portugal standing at 8% in 2022 and 5.8% in 2023, according to the autumn macroeconomic forecast published on Friday. These figures are higher than the forecast included in the State Budget for 2023. The Executive expects a 7.7% inflation this year and 4% next year.
These projections also represent an upward revision from the Commission’s macroeconomic forecast (6.8% inflation in 2022; 3.6% in 2023). For 2024, meanwhile, Brussels now projects that price rises will calm, with inflation slowing to 2.3%.
Looking at country-specific factors, extreme drought has also boosted inflation in Portugal, “as unprocessed food prices increased by 18.1% in September (y-o-y) as compared to 12.7% in the euro area,” the European Commission says. The gradual moderation in the coming years to 5.8% in 2023 and 2.3% in 2024, given the “assumed decrease in prices of energy and food commodities while service prices are expected to remain high, paced by wage adjustments.”
