Portugal begins sending €125 payments to help residents cope with inflation

By Alyssa McMurtry

OVIEDO, Spain (AA) - The Portuguese government began sending out €125 ($122.52) payments to residents on Thursday as part of Lisbon’s strategy to help families and individuals cope with inflation.

Finance Minister Fernando Medina said payments will be sent to around 500,000 beneficiaries daily for around 10 days.

Around 5 million people, or nearly half of the country’s population, are set to receive a non-taxable deposit in their bank accounts.

Adults who make less than €2,700 per month — more than double the national average — and are not receiving pensions are entitled to the payments. Guardians of children or young adults under age 24 will receive an additional €50 per child.

In Portugal, year-over-year consumer prices shot up by 9.3% in September — the highest jump in 30 years.

Energy and food prices helped drive inflation, climbing by 22.2% and 16.4%, respectively.

Speaking last week to Portuguese broadcaster SIC, Medina admitted that there are limits to how much the government can help consumers cope with the price increases.

“The impacts of inflation cause difficulties in everyday life for most people … but no government can compensate all of those effects. It would be false to say one could,” he said.

In Portugal’s recently announced 2023 draft budget, the government predicts inflation will lead to a slowdown in economic growth next year, but remains committed to bringing down the government deficit.