As was the case nationally, the tourism sector once again inflated prices in September in the Azores, where inflation accelerated (2.39% in the Azores, 2.01% on the mainland).
The Restaurants and Hotels category recorded inflation of 4.95% in the Azores, one of the highest of all the categories, even rising compared to August (3.68%).
Inflation in the Communications sector (5.73%) and health (4.36%) also contributed to the acceleration in prices in September.
Food products fell compared to August (from 3.28 to 2.90%), while alcoholic drinks and tobacco recorded high inflation, at 5.33%.
In terms of national inflation, also by expenditure class and compared to the previous month, the prices for Restaurants and hotels and Leisure, recreation, and culture stand out, with variations of 4.7% and 1.9%, respectively (2.4% and 1.2% in the previous month).
In the opposite direction, there were decreases in the year-on-year rates of change for Clothing and footwear (class 3) and Alcoholic beverages and tobacco (class 2), with changes of -1.4% and 3.1% respectively (0.3% and 3.7% in August), as in the trend in the Azores.
Consumers spend more when they think they’re saving
A new study confirms the existence of the phenomenon of promotion in Portugal, in which consumers spend more in the supermarket trolley or in stores, even though they believe they are taking advantage of more promotions.
Centromarca—Associação Portuguesa de Empresas de Produtos de Marca (Portuguese Association of Branded Products Companies) and the consultancy TouchPoint concluded that the brochures advertise more and more articles as being on sale, but the discounts are also smaller.
In the first half of this year, the majority (63%) of items in the brochure were on sale, and the average discount was just 28.8%. In the same period in 2023, 58.7% of items were on sale, and the average discount was 30.4%.
According to calculations in the report “Promoflation: Reality or Myth?” sent to Jornal Económico (JE), it was two percentage points higher in 2022, which confirms a reduction in recent years.
Recently, in the context of inflation, consumers faced regulation when the price remained the same, but the quantity of product in the package decreased—this was particularly noticeable in packages such as butter, sauces, or potato chips. Currently, the data collected by the consultancy and the association point to promotion when there is an indirect increase in the actual cost of products by reducing the frequency or value of discounts.” “The general increase in prices and the decrease in purchasing power have contributed to the price factor becoming more and more decisive at the moment of purchase. The pressure surrounding this factor leads to communication strategies that are increasingly focused on discounts and promotions, which requires extra attention from consumers”” commentedCentromarca’ss general manager, Pedro Pimentel, in statements to JE.
In the opinion of TouchPoint Consulting’s Customer Experience Officer,” “this scenario reflects a strategic adaptation by retailers to consumers'” price sensitivity, harnessing the power of promotions while minimizing their impact on actual discount.””” “Promoflation can thus generate an illusion of savings, which requires greater financial literacy on the part of consumers to make more informed purchasing decisions and avoid overspending, even when they believe they are benefiting from promotions”” explains Armando Mateus.
The authors of this analysis – which involved a sample of 1,685 promotional leaflets from 13 major retail chains in Portugal between January 2022 and June 2024 and more than one million articles – also reveal that companies are betting on a promotional leaflet strategy, including more products in these paper and/or online communication pieces.
Therefore, they advise retailers to invest in greater promotional efficiency to ensure that these strategies continue to stimulate consumption, adding value for brands and consumers.

in Diário dos Açores – Osvaldo Cabral, director

Translated to English as a community outreach program from the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL) as part of Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno, PBBI thanks Luso Financial for sponsoring NOVIDADES.