Portugal's inflation just hit a three-year high

Fuel is pushing up the cost of living faster than at any point in three years. It's Thursday, 1 October. Twenty-three degrees. Air quality: 25 (Good). Here's what you need to know.

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INFLATION HITS 3.6%, THE HIGHEST IN THREE YEARS

Prices in Portugal were 3.6% higher in September than a year earlier, up from 3.3% in August. That's the flash estimate from INE, the national statistics institute, and it's the highest rate since 2023.

Fuel is doing most of the damage. INE says the jump is largely down to fuel prices, and energy overall was 15.4% more expensive than a year ago, up from 12.2% the month before. A new macroeconomic report from Nova SBE, Lisbon's Nova School of Business and Economics, and BFF Banking Group links those energy costs to disruption in the Strait of Hormuz. Fresh food rose too, by 3.6%. Across all prices, the rise from August to September alone was 1.2%.

Take energy and fresh food out, though, and the picture is calmer. Core inflation came in at 2.7%, up just 0.1 points. So far, the pressure is concentrated in what you pay at the pump and for power, rather than spreading evenly across everything you buy.

The EU's energy chief is already worried about winter. At an informal meeting of EU energy ministers in Dublin on Tuesday, Energy Commissioner Dan Jørgensen said Europe isn't heading for a supply crisis, but warned that high prices could hurt households almost as much as a shortage would, leaving people unable to afford heating or the journey to work. He pointed out that nearly 50 million Europeans already can't keep their homes warm enough in a normal winter.

Brussels won't be stepping in with an EU-wide windfall tax on energy companies. Jørgensen left that to national governments, and urged any fuel subsidies to be targeted and temporary. He also flagged gas storage: countries now have to fill their reserves to 80%, down from 90%, and falling well short this winter would leave Europe starting next year's refill with less in the tank.

The costs most exposed are energy ones: fuel now, and heating as the weather turns. If you're budgeting for the next few months, that's where to expect the pressure. INE publishes the final September figures on 13 October.

Bottom line: for now this is an energy problem rather than a general price spiral, and energy is a bill that grows in winter.

⚡ QUICK HITS

You'll soon be able to tap a bank card on far more than the Metro. Eight public transport bodies have signed a deal to let passengers pay at the validator with a contactless bank card, phone or watch, rather than buying a ticket first. The signatories include CP, the national rail company, the Lisbon and Porto metros, the Transtejo/Soflusa river ferries and the two metropolitan transport authorities. Mobi.E, which already coordinates payments for electric-car charging, will run the shared platform. Lisbon's Metro already takes contactless across its network; the aim is to extend that. The catch: there's no start date yet and no word on fares. Infrastructure and Housing Minister Miguel Pinto Luz says the goal is to win people onto public transport by making trips simpler.

Moedas wants the government to limit ride-hailing cars in Lisbon. Speaking at the Portuguese Tourism Summit on Monday, the mayor asked Economy Minister Manuel Castro Almeida for national action to cap the number of TVDE vehicles, the Portuguese term for ride-hailing services like Uber and Bolt, in the capital. He criticised drivers who ignore traffic rules, and said some tuk-tuk operators don't put enough into tour quality or know the city's history well enough. The city already agreed zones with Uber and Bolt earlier this year where trips can't start or end, and tuk-tuks face tighter rules and more inspections. Moedas was clear he doesn't want to turn visitors away. The pressure, he said, is concentrated in specific neighbourhoods.

The state is taking in more tax, and its auditors won't vouch for the books. Tax revenue reached €41.59 billion by the end of August, up 4.7%, or €1.88 billion, on last year. IVA, or VAT, drove most of it, up 8.8%, with IRS, personal income tax, up 7.1%. Corporate tax fell 5.7%, and ISP, the fuel tax, fell 3.9%. Separately, the Court of Auditors says it can't certify the reliability of the state's 2025 accounts. Of €5.4 billion in subsidies and grants, it found €526 million recorded without enough detail to show who received the money or what it paid for. Accounting errors also understated revenue and spending by at least €331 million. Both land just before the government presents its next State Budget.

PetDoctors Veterinários - An English-Speaking Vet for Your Dog or Cat

Moving to Portugal with a pet comes with a small, nagging worry: what happens when something's wrong and you can't explain it to the vet? PetDoctors Veterinários, with practices in Lisbon and Corroios, handles exactly that. The team runs consultations in English, so you actually understand your pet's diagnosis, treatment and options rather than nodding along and hoping.

It's a full small-animal practice for dogs and cats, not just a translator with a stethoscope. They cover the everyday essentials, vaccinations, health checks and preventive plans, right through to internal medicine and surgery.

They also run in-house blood work, so lab tests are done at the practice and results come back quickly, which means faster diagnoses and quicker decisions when your pet needs them. On top of that there's a dedicated dermatology clinic, genuinely useful if your dog or cat has been battling persistent itching, allergies, recurring ear infections or hair loss, the kind of thing that drags on when nobody gets to the root of it.

Whether you've just arrived and need to set up a vaccination schedule, or you've been here years and want a vet you can actually talk to, they see both Portuguese and international pet owners across Lisbon, Corroios and the surrounding areas. Their website is now fully in English too, so you can browse services and book easily.

The goal they set themselves is a simple one: to help your pet live a healthier, happier life, and to give you the information and support to make confident decisions about their care.

→ Find them and book an appointment ←

We only partner with businesses we think genuinely help our community. If this is useful to you, or if you know another pet owner who's been putting off finding a vet, every click and every share goes a long way to keeping this newsletter free every morning.

🍽️ SPOT OF THE DAY

NOVA WINE BAR (CHIADO)

Nova's motto is simple: you choose the food, and they help with the wine. It's a small bar on Rua Nova do Almada, on the slope between Chiado and the Baixa, with bottles stacked from floor to ceiling.

The list runs to more than 600 wines, all Portuguese and chosen from small producers, from reds and whites to rosé and port. It's a good place to try bottles you won't find on a supermarket shelf, and to learn something while you do: reviewers keep mentioning how the team explains each pairing and puts it in context. The food is built around the glass, with cheese and ham boards among the regular orders.

Leave room for dessert: the dark chocolate mousse comes with ginger, olive oil, flor de sal and orange zest. Worth knowing before you go: it opens at 4pm, Monday to Saturday, and is closed on Sundays.

→ Find them here ←

Insider tip: book ahead, especially at the weekend. One regular says the bar often fills within five minutes of opening, so if you're walking in, be there at 4pm.

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See you tomorrow morning.

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