From rising rents to the end of zero VAT. All prices change from 1 January

The arrival of the New Year brings a price update in many sectors, which promises to impact the Portuguese wallet. From the increase in housing rents, to the end of zero VAT, from January 1, nothing will remain the same.

The three main operators in Portugal, Meo, Vodafone and Nos, will raise their prices, bread will become more expensive to cover production costs, electricity will rise by 3.7% for families in the regulated market, and the remaining operators in the liberalized market have not yet announced the value of the increases. In the area of ​​water, Empresa Portuguesa das Águas Livres (EPAL) will implement an inflation-linked increase of 3.3% in Lisbon.

One of the areas of most interest to the Portuguese is housing, where rents will be updated to their highest value, at 6.94%. However, for some tenants, the increase may be more noticeable because the law allows the landlord to add to this value the value of the previous two years – if they choose not to update rents in 2022 and 2022.

In these cases, the rate of 6.94% can be added to the 2% allowed in 2023 and the rate of 0.43% for the previous year. But it may also happen that there is no increase, as updating rents is not mandatory and the landlord can choose not to do so. To ease the pressure on tenants with this expected increase in 2024, the rent subsidy of 4.94% has been extended. This is related to increasing the support granted to families whose effort exceeds 35% when paying rent.

It will also be possible to update the so-called old rents (which will not be transferred to the New Urban Rental System – NRAU) based on the coefficient resulting from inflation, a solution that has received strong criticism from landlord associations.

He added: “The market in general is betting on the strength of the declines that begin in March or April. I think the bankers who are part of the ECB will be more conservative and try to delay this decline further, but between March and June I am convinced that we will see an easing of interest rates. “If it happens in March, it will most likely reach 0.25%, and if it happens later, I will bet on 0.5% to strengthen the economies,” economist Joao Duque told SIC Notícias.

The tobacco tax will also increase by at least 30 cents, in addition to alcoholic beverages whose taxes will increase by about 10%.

From January 4 onwards, the VAT on basic food products ends, meaning that prices are expected to increase on all types of food products from milk, vegetables and fruits, as the VAT will return to around 6% and 23%. This measure was extended due to “operational difficulties” in retail trade, as Finance Minister Fernando Medina said last week.

“The Portuguese will already feel the rise in some goods just because they switch to the regular VAT system. Ending the application of the zero rate on a reasonably large basket of goods leads to a sudden rise in the prices of these goods,” the economist points out, adding that this measure has had results. Positive because if there had been no such measure, prices would have been lower and higher.

“Although the Portuguese complained that many of the goods affected by this measure had practically no change in prices, they did not change because when the measure was implemented, the variation in food prices for a year was almost always higher than the previous year.” 15%,” says João Duque.

The price of plastic containers could be higher than the current price of 30 cents in January, with the addition of aluminum containers Away They will also have a cost associated with them at the beginning of the year. In addition, wholesale plastic bags, such as for fruits and vegetables, will cost four cents. Cheaper medicines could also see an increase in 2024, according to the National Pharmaceutical Association (ANF).

In terms of transportation, although the Navigante corridor is maintained, in Lisbon, the prices are the same. Students between the ages of 4 and 23 will receive free tickets. As for Andante, the price of a Z2 ticket (which allows you to travel between two neighboring regions) ranges from €1.30 to €1.40. We observe the same nominal increase in Z3 bonds, whose value ranges from €1.70 to €1.80, and in Z4 bonds, whose value ranges from €2.15 to €2.25.

Of the five-zone crossing tickets (Z5), the increase was higher (20 cents), rising from the currently applicable €2.55 to €2.75. Z6 addresses, the last in the table made available by TIP to Lusa, also suffer a 20 cent increase, rising from €3.00 to €3.20.

As for Andante 24 daily titles, in the case of Z2 its price rises from €4.70 to €5.15, Z3 from €6.05 to €6.65, Z4 from €7.55 to €8.30, Z5 from €9.05 to €9.90 and Z6 from €10.75 to €11.80. euro. Andante Tour 1 titles (which allow 24-hour travel across the entire network) are also subject to a 50-cent increase, from the current €7.00 to €7.50, and Andante Tour 3 (which allow travel across the entire network for 72 hours) an increase from €15 to €17. .

Prices remain unchanged at €30 for Andante 3Z or Municipal – for travel in 3 regions or within one municipality – and €40 for Andante Metropolitano, plus €40 for 3Z_IR and Municipal_IR cards, and €50 for passes. Metropolitano I.R.

The same cannot be said for CP train tickets, which will see a price increase of 6.25% for Alfa Pendular and Celta tickets and 6.43% for the rest. Fees will also rise, due to inflation, franchisees will increase fees by 2.04%.

The minimum unemployment benefit will rise by 33 euros, from 552 euros to 585 euros, and the maximum will rise by 75 euros, to 1,273 euros.