Eurostat tells us that inflation in Portugal went from 2,0% in September 2010, to recently 2,9% to 3,5% currently in Portugal. The total inflation of 2009: -0,9% , 2010: 1,4%
This 3,5% inflation is higher than in most other EU countries and the growth rate seems high... Of course we must wait for the final numbers of 2011 and 2012 to confirm whether the indications in fact lead to an inflation of this order.
Looking at transport costs and electricity which all have or will grow at a rate at over 3,5% the future looks a bit expensive.
Especially taking into account salaries either have not grown or have been diminished. And not forgetting the added tax burden.
Also, I believe we can take it for granted that many/most public services will either/both raise the cost or add supplemental taxes (*)
All in all many Portuguese will soon see a power of purchase 30% to 40% lower than a few years ago. At this moment I estimate the numbers but will in a future article look in more detail at PEC 1 to PEC 6 (**), and other austerity measures we are suffering in Portugal
(*) My favorite is that when you call some public entities you pay a fee per minute in addition to the actual cost of the call. Consequently, I can foresee, they will wait even longer to answer the phones. Of course it is not all bleak. I am sure there will soon be prizes to win among the callers to create even more traffic:
"Congratulations - you just won a ham - you are still number 98 in queue to talk to an operator to report a dead relative."
(**) PEC 5 and PEC 6 do not actually exist under that name, but I like the sound of PEC = pack in English. PEC means Programa de Estabilidade e Crescimento - Program for stability and growth, e.i. austerity measures in a package. Pack 5 and 6 are by the current government. PEC 4 was never implemented (the government fell on 4. After 4 packages in 1 year and three promises of this being the last one...)
This 3,5% inflation is higher than in most other EU countries and the growth rate seems high... Of course we must wait for the final numbers of 2011 and 2012 to confirm whether the indications in fact lead to an inflation of this order.
Looking at transport costs and electricity which all have or will grow at a rate at over 3,5% the future looks a bit expensive.
Especially taking into account salaries either have not grown or have been diminished. And not forgetting the added tax burden.
Also, I believe we can take it for granted that many/most public services will either/both raise the cost or add supplemental taxes (*)
All in all many Portuguese will soon see a power of purchase 30% to 40% lower than a few years ago. At this moment I estimate the numbers but will in a future article look in more detail at PEC 1 to PEC 6 (**), and other austerity measures we are suffering in Portugal
(*) My favorite is that when you call some public entities you pay a fee per minute in addition to the actual cost of the call. Consequently, I can foresee, they will wait even longer to answer the phones. Of course it is not all bleak. I am sure there will soon be prizes to win among the callers to create even more traffic:
"Congratulations - you just won a ham - you are still number 98 in queue to talk to an operator to report a dead relative."
(**) PEC 5 and PEC 6 do not actually exist under that name, but I like the sound of PEC = pack in English. PEC means Programa de Estabilidade e Crescimento - Program for stability and growth, e.i. austerity measures in a package. Pack 5 and 6 are by the current government. PEC 4 was never implemented (the government fell on 4. After 4 packages in 1 year and three promises of this being the last one...)
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