How will the wage increase affect purchasing power in Portugal?

Average salaries in Portugal grew by about 29% between September 2021 and mid-2026, outpacing the 22.6% cumulative inflation rate, yet households still face a squeeze because essential food prices rose much faster. An analysis of 46 goods and services showed that nearly half outpaced wage growth, led by cod (more than doubling with a 25% annual rise), eggs (up 86%), and milk, potatoes, and meat (up about 50%). Meanwhile, rents kept pace with wages, while daycare and public transport costs fell due to government support, even as overall inflation edged up to 3.6% in September with Bank of Portugal projections keeping it above 2% until 2028.