New year is almost always a sign of price increases. However, in the face of inflationary pressure, how will prices be in 2023? Know what is more expensive.
O price increase when the new year arrives it is almost as sure as the 12 bells. And after a year with inflation on the rise, the forecasts are not famous for the pockets of most Portuguese people. It is time to do the math and understand which expenses will rise in 2023.
PRICE INCREASE: PRODUCTS AND SERVICES GET MORE EXPENSIVE
In 2021, rents were frozen. In 2022, the updating coefficient of the different types of rents (urban and rural), which determines the increase in rents, was 1.0043. The increase was thus 0.43%, that is, 0.43€ in every 100 euros.
In 2023, rents will suffer the biggest increase in the last nine years. As stipulated by the Government in law No. 19/2022 , the rent update coefficient will be 1.02, which means an increase of 2%without prejudice to a different stipulation between the parties.
Monthly expenses also go up in 2023 and one of those price increases concerns electricity.
Those in the regulated market will pay 1.6% more in January than in December 2022. In terms of average annual variation, the ERSE estimates that the rise will amount to 3.3% compared to the average of 2022.
In the liberalized market, where tariffs are set by suppliers, the price increase in some cases will be significant. This is the case of EDP Comercial, which has already announced a 3% increase in bills for residential customers. Galp, in turn, expects to lower the overall invoice value by around 11%. Endesa will maintain prices.
In the case of telecommunications, the existence of price increases depends on the operator. Altice Portugal, owner of MEO, has already taken over the update of values from February 2023, when the Consumer Price Index (CPI) will be known.
The remaining operators have not yet announced their position.
The natural gas bill in the regulated market will increase by around 3%. ERSE has already announced that the price of the energy tariff in the regulated market will be updated by an additional two euros per MWh, with effect from January 1, 2023.
In the liberalized market, Galp has already guaranteed that it will not change prices in the first three months of 2023.
The price of bread will rise again in 2023. The increase is due to the increase in the cost of raw materials and energy, but also to the update of the national minimum wage.
It’s more of a price increase due to inflation. On January 1, new toll prices come into effect, which reflect the biggest increase in recent years.
It should be remembered that, in 2022, the Portuguese already had to bear the biggest increase in the cost of tolls in recent years, in the order of 1.57%. But in 2023, the increase will break all records: increases of 4.9%.
If you live in the metropolitan areas of Porto or Lisbon, you will continue to pay the same amount for the monthly pass, but the occasional tickets go up. The Mobility and Transport Authority (AMT) has already announced a price update of 6.11%. Remember that, in 2022, the increase was only 0.57%.
INCREASES THAT GIVE MONEY
But not all increases are price-related, so they don’t always mean less money in your pocket. There are even some that are welcome, as they represent an increase in income.
This is the case of the minimum wage, which rises from 705 euros in 2022 to 760 euros in 2023. This value serves as an indicator for other prices, so there are several things that go up whenever the guaranteed minimum monthly remuneration is increased.
This is the case, for example, of the maximum ceiling for compensation for collective redundancies or the maximum limit of the Salary Guarantee Fund.
The value of the IAS (Social Support Index), which had been at €438.81 since 2020, rose in 2022 to €443.20. In 2023, it will move to 480.43 euros. This index serves as a reference for benefits such as the RSI and the social unemployment subsidy, but also for the minimum amount of the sickness subsidy and exemption from user fees.
The value of the minimum wage also determines the percentage of salary that can be pledged or the minimum amount of tuition fees in higher education.
Minimum limit of unemployment benefit
The minimum limit of the unemployment subsidy also rises in 2023, moving to the 550 euros. This limit, which until now was an exceptional measure, now corresponds permanently to 1.15 x IAS.
Reforms go up
After the exceptional supplement paid in October, pensioners will have increases between 3.53% and 4.43% in 2023, depending on the amount of the pension.
Thus, according to the report that accompanies the State Budget, the increases in 2023 will be:
- Pensions up to 2x IAS: 4.43%;
- From 2x IAS to 6xIAS: 4.07%;
- More than 6x IAS: 3.53%.
Civil Service Salaries
All civil servants who earn up to 2,612.04 euros will have a minimum increase of 52.11 euros. From this value, the salary update value of 2% is applied.
Article originally published in July 2019. Last updated in December 2022.