New price changes in 2025: families face fresh pinch

Get ready to tighten those belts, folks. While inflation in 2025 is set to calm down compared to the tumultuous figures of recent years, families across Portugal will still feel the pinch as certain everyday costs continue to soar.

The good news? Electricity is bucking the trend and headed downwards.

Yes, you read that right – electricity might actually lighten the load on your wallet. Initially, families in the regulated market were braced for a 2.1% tariff increase, but new legislation adjusting the reduced VAT rate (6%) means you could see your bill drop by as much as 88 cents. Meanwhile, on the liberalised market, which covers most mainland Portuguese households, EDP Comercial plans to slash bills by an average of 7% from January 1 and Galp has already brought in a 6% cut. When do we ever hear of bills going down? Sparks are flying in the best possible way.

Rent and public transport in Portugal: home sweet (more expensive) home

Bad news for renters: after last year’s record rise, 2025 is set to dish out another bump of 2.16%. This translates to an extra €2.16 for every €100 of rent.

Watch out if you’ve dodged increases over the past couple of years – landlords can now stack 2023 and 2024 updates on top of 2025’s figure, reaching a total rent hike of around 11.1% in some cases. The silver lining? Rent increases aren’t compulsory – your landlord might opt to show some festive spirit and keep prices stable.

Public passenger transport is also on the up, with fares set to rise by 2.02%. But there’s a bright spot if you’re in the Lisbon Metropolitan Area, where Navegante passes and Carris Metropolitana tickets will hold steady at current prices.

Telecommunications and food prices in 2025

Portugal is bracing itself for potentially higher phone and internet bills in 2025. Altice Portugal (Meo) has announced it will push up its prices, except for Uzo and Moche customers, where tariffs will stay put. NOS, however, is taking a different approach and has promised no price increases next year, covering all services and tariffs. Vodafone, meanwhile, remains tight-lipped about whether charges will change – we’re left on hold waiting for further updates.

Bread is on the rise – quite literally. Bakers point to steep production costs and the uptick in the national minimum wage as reasons for pricier loaves in 2025. Traditional favourites (like the good old puffy rolls and cream-filled delights) remain in hot demand, but many are turning towards healthier, wholemeal options and trendy plant-based pastries. Either way, expect your daily bread to cost a few more crumbs.

Dairy devotees, are also up in arms, as their favourite cow products are going up as well. Milk and other dairy products are expected to continue the upward climb that began in the latter months of 2024, thanks to hefty production costs – from rising diesel to electricity bills. So next time you pop out for a pint of white gold, don’t be surprised if it sets you back a bit more.

All in all, 2025 is shaping up to be a mixed bag for Portugal’s families. With electricity prices easing off but household staples (not to mention the roof over your head) costing more, it’s a case of two steps forward, one step back. Stay tuned – we’ll be keeping an eye on whether these predictions rise, fall, or fizzle out in the months to come.

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