Rising Food Prices in Portugal: Cod & Grocery Costs Soar

The price of bacalhau, dried and salted cod, has reached record highs in Portugal this year, placing a strain on household budgets and prompting consumers to rethink their dietary habits. Recent data indicates that 50 euros is now insufficient to purchase three kilograms of bacalhau, a staple in Portuguese cuisine, signaling a significant shift in affordability for this traditionally popular food item. The surge in prices is part of a broader trend of increasing food costs across the country, forcing shoppers to seek out more economical alternatives.

The Rising Cost of the Portuguese Staple

The escalating price of bacalhau reflects a wider increase in the cost of living in Portugal. According to data from Deco Proteste, the average grocery basket now costs over 250 euros, a 70-euro increase since 2022. This increase is impacting consumer choices, with many opting for cheaper cuts of meat or reducing their consumption of traditionally favored items like bacalhau. Maria Emília Romão, a local merchant, notes that only those with higher incomes are consistently purchasing bacalhau, even as others are settling for smaller portions due to financial constraints.

Broader Food Price Inflation

The price increases aren’t limited to bacalhau. The Deco Proteste basket of 63 food items reveals a 70-euro increase since the start of the war in Ukraine. Fresh pescada (hake), for example, has nearly doubled in price, rising from just over six euros in 2022 to almost 13 euros currently. Consumers are reporting significant price hikes on other staples like choco (cuttlefish), which have jumped from eight to 14 euros in a matter of days and various vegetables.

Shifting Consumer Habits

Faced with higher prices, Portuguese consumers are adapting their shopping habits. Many are switching to more affordable protein sources like chicken and pork, as beef prices continue to climb. According to Deco, beef prices have increased by 129% since January 2022. Butchers are also observing a shift in demand, with lamb and goat becoming more expensive, and black pork seeing consistent price increases. Consumers are actively seeking promotions and discounts to manage their grocery bills, and those with access to land are increasingly relying on home-grown produce to supplement their diets. This trend is particularly noticeable in rural areas.

The Impact on Household Finances

The rising cost of food is exacerbating financial pressures on Portuguese families. Beyond groceries, households are grappling with increased costs for housing, transportation, and energy. Maria Emília Romão highlights the disconnect between rising living costs and stagnant wages and pensions, stating that lifestyles have changed significantly as a result. While the Deco basket saw a slight decrease this week, it has still increased by nearly 10 euros since the beginning of the year, maintaining consumer concern.

Cabaz Alimentar Trends and Recent Increases

The “cabaz alimentar” – the grocery basket – has been under consistent upward pressure. In November 2025, the price of the basket reached 244.34 euros, the second-highest level in three years, representing a 56.64 euro increase compared to 2022. Significant contributors to this increase included coffee, fish, meat, and eggs. More recently, in late February/early March 2026, the price of the basket continued to climb, with coffee, douradinhos (a type of small fish), and tuna experiencing notable price hikes. The overall cost of the basket has risen by over eight euros since the start of 2026.

Broader Economic Context

The current inflationary environment impacting food prices in Portugal began with the COVID-19 pandemic and was further aggravated by the war in Ukraine. These global events have disrupted supply chains and increased production costs, ultimately leading to higher prices for consumers. The DECO PROteste basket has increased by 35% since the start of this period, now costing over 253 euros. The situation is prompting a re-evaluation of dietary habits, with consumers prioritizing affordability and seeking out promotional offers.

What to Expect Moving Forward

The trajectory of food prices in Portugal remains uncertain. While the recent slight decrease in the Deco basket offers a glimmer of hope, the underlying economic pressures persist. Continued monitoring of global events, supply chain dynamics, and domestic economic conditions will be crucial in assessing future price trends. Consumers are likely to continue adapting their shopping habits, prioritizing value and seeking out alternatives to traditionally expensive items like bacalhau. The situation underscores the vulnerability of Portuguese households to external economic shocks and the importance of sustainable food systems.