Price Changes in Portugal for 2025: What to Expect
The prices of tolls, rents, telecommunications, and bread are set to rise, while electricity tariffs are expected to decrease in 2025.
What?
2025 is expected to bring a decline in inflation rates, but Portuguese households will face widespread increases in the costs of some services and goods, including tolls, rents, telecommunications, and bread.
However, electricity prices in the both regulated and liberalized markets are expected to decrease next year.
Key Price Increases for 2025
Tolls
Highway tolls are set to rise by 2.21%, reflecting October’s inflation rate excluding housing (2.11%), with an additional 0.1% added as compensation to concessionaires under a 2022 agreement. This agreement followed a cap imposed on toll increases in 2023.
Public Transport
Public passenger transport fares will increase by 2.02% in 2025, based on inflation data from the National Statistics Institute (INE). However, prices for Navegante passes in the Lisbon Metropolitan Area, as well as occasional tickets for Carris Metropolitana, will remain unchanged.
Rents
After experiencing the highest increase in 30 years in 2024, rents may rise by 2.16% in 2025, based on INE's updated rental adjustment coefficient. This means a €750 monthly rent could increase by €16.20. Landlords who didn’t adjust rents in the last two years can combine the 2023 and 2024 coefficients with the 2025 rate, potentially leading to an 11.1% total increase. However, rent adjustments are not mandatory and depend on landlord discretion.
Telecommunications
Telecommunication prices will see mixed changes. Altice Portugal (Meo) has announced price increases for 2025 as contractually stipulated, excluding its Uzo and Moche brands. NOS has committed to freezing its prices across all services, while Vodafone Portugal has not yet disclosed any updates.
Milk and Dairy Products
The prices of milk and dairy products are expected to remain high, continuing a trend from late 2024. Rising production costs, especially for fuel and electricity, are driving this increase. Producers emphasize the need for predictability and balance across the production, distribution, and consumer sectors.
Bread
Bread prices will also rise in 2025 due to increased production costs and the national minimum wage hike. Despite price increases, the bakery and pastry industry saw a slight rise in revenue in 2024, though sales volume declined. Consumers continue to favor traditional items like artisanal bread and custard tarts while increasingly exploring innovative products like whole-grain and plant-based baked goods.
Positive Outlook: Electricity Prices Decline
Despite the general trend of rising costs, electricity tariffs are expected to decrease in 2025, offering some relief to households. This reduction highlights the Government’s efforts to adjust VAT policies and reflects improving market conditions.
In the regulated electricity market, a planned 2.1% tariff increase for January will translate into reductions of €0.82 to €0.88 due to legislative changes that increase the amount of energy consumption subject to a reduced VAT rate (6%).
In the liberalized market, which dominates mainland Portugal, EDP Comercial and Galp have announced a 6% reduction in the electricity component of bills, citing improved market conditions. EDP has further clarified that its customers’ bills will decrease by an average of 7% starting January 1.
Source: Lusa