Portugal announces 2.4 billion euros in aid to families to fight inflation

The Portuguese government on Monday announced a 2.4 billion euro (US$2.4 billion) package of measures to help families cope with inflation, including a cut in energy taxes.

The Socialist government also plans direct aid to families and an extraordinary increase in pensions, Portuguese Prime Minister António Costa said at a press conference.

The package of eight measures, titled “Families First,” has an estimated value of 2.4 billion euros, in addition to the 1.6 billion euros already distributed through September.

“We have not seen such a sharp and sudden increase in the cost of living in 30 years,” Costa reasoned.

“We must be cautious to avoid an inflationary spiral,” he added.

The measures include a check of 125 euros per person plus 50 euros for each child for Portuguese earning up to 2,700 euros per month.

Pensioners will receive a supplement equal to half their monthly pension.

In addition, the government, which has an absolute majority in Parliament, will ask deputies to vote for a reduction in VAT on electricity from 13% to 6% and to extend the fuel tax cut already in effect until the end of the year.

Costa also announced a 2% cap on rent increases and a freeze on public transport fares for next year.

In Portugal, consumer prices rose 9% year-on-year in August, according to a preliminary estimate by the national statistics office.

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