OE2027: Government forecasts average inflation “practically identical” to 2026

ANDurico Brilhante Dias spoke to journalists in Parliament, accompanied by the Socialist MPs António Mendonça Mendes and Marina Gonçalves, after a meeting with finance ministers, Joaquim Miranda Sarmento, and Parliamentary Affairs, Carlos Abreu Amorim, on the general lines of the proposal for the State Budget for 2027 (OE2027).

According to the leader of the socialist bench, the inflation forecast by the executive for next year is “practically identical to the average inflation of the year 2026”.

Brilliant Dias, however, did not advance any expected value by the government, referring only to the fact that in recent months inflation has been around 3% to 3.4% in homologous terms.

The Council of Public Finance (CFP) estimates a growth of the Harmonised Index of Consumer Prices (HICP) this year to 3.2%, in the context of rising fuel prices driven by the war in the Middle East

Eurico Brilhante Dias also stated that the government foresees lower nominal growth, in particular in revenue, adding that this “makes it apparent that it has no instrument to support people, in particular for the increase in fuel and the cost of the food basket”.

“ These are two main concerns of the Portuguese today, and we are somewhat surprised that the government does not present a support instrument, even if it is a precautionary instrument built from another inflation rate,” he added.

The socialist also revealed that the Minister of Finance communicated to the PS that “it will be considered” in the next State Budget an appropriation to ensure projects of the Recovery and Resilience Plan (PRR) that are not completed, an aspect that Brilliant Dias considered “very important”.

Asked about whether the meeting brought the PS closer to the OE2027, the deputy stressed that the meeting “did not approach or separate”, having been “merely informative” and without negotiating character.