Portuguese food price rises higher than EU

Food prices have increased by 19%,

Portuguese food price rises higher than EU - a supermarket shelf

The Portugal Resident reports on a survey published yesterday in the Público newspaper showing that food price rises in Portugal are higher than those for the eurozone as a whole. Eight of the ten goods and services that rose more in price in Portugal than in the Eurozone have been food products.

According to Público, which cites sources in both the food and distribution sectors, the increased cost of transporting goods and “historically low” prices of some products are being pointed to as reasons for the situation.

In terms of food, eggs, fresh milk, canned fruit, baby food, pork, sugar, vegetables and rice are the goods that rose more here than the eurozone average – while the product where the difference has been greatest is natural gas. According to the Instituto Nacional de Estatística, gas maintains a year-on-year inflation rate of 143.2%, against 51.9% in the eurozone.

But with the exception of natural gas, energy prices in Portugal have actually risen less in comparison with those in the eurozone: coal for example saw a 27.8% increase in Portugal, set against 66.3% in the eurozone, while liquid fuels’ inflation was 21% against 42.9%.

Reasons behind food price rises

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Distribution costs adding to food price rises

Sources contacted by Público gave several explanations for the food price rises:

“How do you make eggs or raise pigs? It’s by feeding them with feed and having the energy to heat them, transport them and, in the case of pork, to refrigerate the meat,” said Luís Mira, secretary general of the farmers’ confederation CAP. “Energy and food are, maybe, 90% of the cost (….) Prices can only come down if the reason they go up also goes down,” he stressed.

Idalino Leão, president of Confagri, the national confederation of agricultural cooperatives, added that increases in production costs were such that they became unsustainable, forcing prices up in a very short period of time.

For Gonçalo Lobo Xavier, general director of APED – Portuguese Association of Distribution Companies, the disparity in price increases between Portugal and the average of the eurozone countries “is based on a set of factors related to production, industry and transport. “National production has a different framework from other European Union member states, particularly on the issue of fertilizer prices, access to cereals (on which it is dependent, in some cases, by more than 90%), energy costs, fossil fuels and transport, and packaging costs,” he told Público.

SIC Noticias has taken a slightly different view, saying Portugal is the third European country where food price rises have been beyond inflation. This is the real issue: incomes in Portugal are generally well below eurozone averages, so being a country that has suffered in this way impacts markedly on those that have the least to start with.

SIC estimates that food price rises have been 19%, meaning consumers have had to cope by purchasing less, and a great deal more carefully. Referring to the war in Ukraine as being the catalyst for the world’s inflation, SIC has no happy message: consequences “will be felt for several years. Even when the conflict in Ukraine began, financial analysts and economists were warning life would be more difficult. A year on we are feeling, throughout the planet, the impact of inflation – the general increase in the price of goods and services.

Thanks to PeterA for the link.

COVID-19 in Madeira: updates can be found in an earlier post

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49 thoughts on “Portuguese food price rises higher than EU”

    • It’s not the sole cause, but it adds to the problem. You can’t create barriers without it affecting trade.

      Incidentally, is this a “library” picture or do they have tomatoes aplenty?

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      • No if you did live around where the supermarkets dont have any shortage of anything neither fruit or vesgetables the prices are up under percent but you need to take in consideration that last year the country did have the worse drought and consequent did affect the crops and in top of that the energy did affect the manufacturing production process that was consequences in everything even the final product packing and distribution to the big chains supermarkets and small shops everything been affected .And in your country their is two reasons Brexit and higher electricity costs in the end of the day everyone is in the same boat ones worse than others .

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      • No if you did live around where in Portugal the supermarkets dont have any shortage of anything neither fruit or vesgetables the prices are up under percent but you need to take in consideration that last year the country did have the worse drought and consequent did affect the crops and in top of that the energy did affect the manufacturing production process that was consequences in everything even the final product packing and distribution to the big chains supermarkets and small shops everything been affected .And in your country their is two reasons Brexit and higher electricity costs in the end of the day everyone is in the same boat ones worse than others .

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  1. Maurice, with respect
    The UK use to import a lot more goods, more so in the winter as things like fruit and vegetables are harder to grow due to the weather, now because of the brexit the EU has limited the amount that can be imported, thus means that the UK has to grow more produce, but that means greenhouses and fuel to heat, but because of the war sending fuel prices through the roof a lot of growers did not plant in January or February due to the fact that the price they get for their produce was actually lower than what they received, I read an article only a few days ago on the subject, there is now a shortage of some produce on the shelves, and what is available has gone up in price considerably, so begs the question, if the UK was still in the EU they would not have this problem.

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    • Yes they would as shortages are occurring in Europe too due to the weather hitting Iberia and Morocco.

      As for empty shelves in UK supermarkets, much of that is down to people going from store to store bulk buying. Our local shops do not have empty shelves, plenty of tomatoes, cucumbers, salad veg etc etc.

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      • Nobody was “bulk buying” as they weren’t aware of the shortage until they couldn’t buy them!!

        In any case, you can’t bulk buy fresh fruit and vegetables!! It’s not like toilet rolls or pasta, which have a long shelf life!

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          • Not forgotten, but no-one knew about the shortage until they discovered it on the shelves – or not as the case may be! It’s not like the loo paper shortage, or the tinned and dried food shortages, which were caused by people panic buying – having heard about people in other countries panic buying.

            This is not the case with tomatoes, as many other countries across the EU are apparently well stocked. There are a variety of factors behind our shortage: weather, greenhouse heating costs etc. and supermarkets refusing to pay a reasonable rate to ensure growers in this country make a profit. On top of that there is the cost and bureaucracy of getting fresh fruit and veg across the channel, which is a consequence of brexit.

            So, to suggest that “much” of the problem is down to people panic buying is incorrect as well as illogical.

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    • Complete right about that and it seems that she neither can see that the two maine things that did affect the country first the war and next all the consequences that come with that for all EU including the UK . But in the UK is Brexit and the higher electricity costs in the end of the day everyone is in the same boat . And the cleaver idea of the Tory part selling out the energy companies years ago is affecting the UK consumers with higher prices . And no none around where can denay that wasnt a very good decison that the governmment did taught the consequences in the future that is happeng righ now foe everyone in the country .

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  2. Too many eggs in one basket. We used to import by reefer ship from Kenya, South Africa, Chile, etc., We are relying too much on North Africa/Morocco. Learn from the Russian energy situation

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  3. The good thing about Brexit no more EU arriving and claiming social benefits 👍even the eastern European beggars went back home after their benefits were stopped😂.

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      • The world had turned ugly with or without Brexit? look at the EU ? Portugal and Madeira for example? We did ourselves a favour the UK has always been one step ahead.

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        • One step ahead of what? Brexit has left us several steps behind! 4% hit to GDP, only economy in the G7 with a smaller economy that before covid, on course to be the worst performing economy in the G7. The last thing we needed with word crises like covid and Ukraine, is to shoot ourselves in the foot, as we have done!

          And all of this on time of 13yrs of austerity has created the perfect storm.

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      • Send the UK MP that pass all the time complete out of touch with the UK reality work in the fields and earn the minimum wage to see if the can survive without asking help to food banks.

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      • Complete right about everything Caroline the two main things that did affect the country first the war and next all the consequences that come with that for all EU including the UK . But in the UK is Brexit and the higher electricity costs in the end of the day everyone is in the same boat . And the cleaver idea of the Tory part selling out the energy companies years ago is affecting the UK consumers with higher prices . And no none around where can deny that wasn’t a very good decision that the government did taught the consequences in the future that is happen right now foe everyone in the country .Sorry the replay did go in the wrong place and wrong words in the begin

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  4. Well one thing that I don’t understand why the UK people cant recognize and even admit that when the Tory party did sold the energy companies in the time of Margaret Thatcher and even later one no one around where is capable of admit that selling them was going to have consequences to the future and they are happening right now even people cant recognizing that is one of causes of the higher cost of energy and subsequent will affect everything in live and add that Brexit . No one is trying to put the country down but people need to stop pertending that never did happen and their isn’t any consequences of that .

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  5. AND PEOPLE AROUND WHERE NEED TO STOP PRETENDING THAT THEY DON’T THINK ALSO THAT THE UK POLITICIANS ARE COMPLETE DETACHED OF REALITY WHEN MANY OF THEM ARE COMPLETE . AND STOP PRETENDING

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    • If only you had stayed in the UK longer than 20 years I’m sure you would have improved the country immensely. On the other hand, we should all be thankful you left!

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      • You know something what I cant stand around where is hypocritical people pretending that their nothing wrong in their country at list I recognize that Portugal as a lot of problems and things can be better and I not denying anything a was opposite of you and the others around where that still continue I denial and complete ignorance about the UK problems . And more many EU people left do you know way they didn’t felt welcome anymore and with Brexit people start to show their true colours.

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  6. And more shows very clear that people around where particular some UK people are complete hypocritical and like to pretend a lot stop pretending that there isn’t nothing wrong and talk about the problem instead deny and ignore . The Tory party selling energy companies years a go and the consequences of that now and stop pretending that isn’t affecting the country in everything . And Brexit also is affecting everything and in top of that stop pretending that people with both sides UK and EU didn’t lost their livelihoods .

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    • First it seems thar you neither you can see or even understand the difference between a insult and comment it seems not . And its complete hypocritical from you making this stament when it was you in another comment that you did imply that I was taking Bloom that was removed by the administration .

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    • James
      Again doesn’t understand the difference between insulting and a comment when expressing a view . And the same I can say about and the others that did insult and disrespect the island and their people . My advice to you and the others before make any type of comments go read their newspapers Diario da Madeira and Jornal da Madeira that you can translate to English or even the news in TV 161 this way you and the others are better informed about everything before making assumptions and conclusions about the island . As far your constant imply that I did insult the UK people I didn’t I express my views about the problems that is affecting the country and not their people that is the difference that neither that you cant understand . At least I read all the UK newspapers and I know very well what is happening in the UK and in Portugal and not denying and ignoring anything like you and the others .

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    • I have deleted quite a few “over the top” comments recently James and will continue to monitor the conversations here – although in principal I am reluctant to censor people’s opinions. However, I have no alternative when they become abusive, obscene or insulting, as some have recently. Generally, I would ask that people try and keep on-topic.

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      • Many thanks for that . I still don’t understand that instead putting their tombs down constantly they are incapable of exchange any views like other people do and it is called communication .

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    • As far as I can see the insults are not against the U.K., but the Government. There is a distinct difference. The PM at the moment is being hyper hypocritical. He is saying how good and what a huge advantage it is that NI has access to the Single Market, whilst denying the rest of the U.K. the same advantage! He also listed all the things that his deal puts right, which is basically a list of all the things that were wrong with Johnson’s rushed through “oven ready” “there will be no border in the Irish Sea” deal.

      With PM’s like him and Johnson and Truss, I fail to see how anyone can say the Government is wonderful! It is they who have not just talked down, but brought down the U.K.

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  7. I can find a French/English translation, a German/English translation, a Portuguese/English translation, what I can’t find is a Isabel/English translation.

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    • Complete laughable neither I managed yet to find a French/English translation, a German/English translation, a Portuguese/English translation to people that prefer live in denial and ignorance about everything .

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  8. And more for everyone around where their isn’t any type of food shortage in Portugal neither vegetables or even fruit despite anyone thinks . And the prices are up yes they are and that is bad for many people . Put your tombs down I can care less at less I know and the other people that live where that their isn’t any type of shortage .

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