LUSA 12/04/2024

Lusa - Business News - Portugal: Bread prices set to rise as minimum wage, production costs increase

Lisbon, Dec. 3, 2024 (Lusa) - The price of bread in Portugal is expected to rise again next year, driven by the increase in production costs and the national minimum wage, according to the Bakery Trade and Industry Association (ACIP). 

"By 2025, the price of bread is expected to continue to rise," said the president of the ACIP board, Deborah Barbosa, in response to Lusa, without giving any figures. "This increase is driven by several factors, including rising production costs, such as raw materials, and the increase in the minimum wage to 870 euros at the beginning of 2025."

Added to this, she said, are energy and transport costs - all with a direct impact on final product prices. As such, she insisted that it is likely that consumers will pay more for bread in 2025. 

However, the ACIP points out that Portugal is among the countries in the European Union with the lowest prices per kilogram of bread and the best quality/price ratios. 

This year, bakery and pastry sales in Portugal have grown slightly, but in terms of unit quantity there has been a reduction. 

Big sellers, such as traditional bread and custard tarts, continue to lead, but there is also growing demand for products classified as innovative and healthy, namely wholemeal breads and pastries made only from plant ingredients. 

Deborah Barbosa said that consumers in Portugal have been adjusting their purchases, opting for smaller quantities and cheaper products due to the loss of purchasing power. 

"However, quality continues to be an important factor" with many consumers preferring handmade products, she emphasised.

For this Christmas, the ACIP expects sales to remain at the same level as in 2023 or to increase slightly. 

 

EP/ARO // ARO.

Lusa