It's cheap partly as wages are so low! But yes, keep quiet. We have had massive rises in taxes and utility bills this year as the government tries to work its way out of the bad economic situation. Prices rises are happening but Lisbon and Portugal generally is still pretty inexpensive.

Lisbon remains one of Western Europe's most affordable capitals largely due to Portugal's lower average cost of living and labor compared to neighbors like France or the UK. This economic structure keeps the prices of "local" goods and services—such as coffee, bread, public transport, and traditional dining at tascas—significantly lower than in other European hubs. Furthermore, the city benefits from a highly competitive tourism market with a wide range of budget accommodations and government investment in accessible infrastructure. While prices in tourist-heavy areas like Baixa and Chiado have risen in recent years due to the city's popularity, the "Portuguese advantage" still allows travelers to enjoy high-quality wine, seafood, and culture for a fraction of what they would pay in Paris or London, especially if they venture slightly off the main tourist drag.