Portugal’s government announces a package of additional 2.4 billion euros ($2.38 billion) of measures to help families weather sharp increases in inflation.
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Portuguese Prime Minister Antonio Costa
On Monday, the Portuguese government announced a package of additional measures worth 2.4 billion euros ($2.38 billion) to help families cope with sharp increases in inflation.
Portuguese Prime Minister Antonio Costa said the new measures included a reduction in the value-added tax on electricity from 13% to 6%, a one-time support for low-income families, and an additional half-month of pensions for all retirees.
Inflation in Portugal was 9% year-on-year in August, or more than double the 4% forecast in the 2022 budget.
The Portuguese government is targeting a budget deficit of 1.9% of gross domestic product this year following a deficit of 2.8% in 2021, but it ran a surplus in the first seven months of the year. The Central Bank of Portugal expects the economy to grow by 6.3% this year.
In turn, the German government agreed, yesterday, Sunday, to €65 billion plan ($65 billion) to ease the pressure on families, amid falling Russian gas supplies and rising energy bills.
The rise in inflation rates in the euro area comes in light of the increase in food and fuel prices, which exacerbated with the imposition of Western sanctions on Russia following the launch of its military operation in Ukraine, especially since Russia is one of the most prominent producers of energy resources and food exporters in the world.
