(Bloomberg) -- Portugal’s government is considering cutting the country’s value-added tax rate to help lower food prices in the southern European nation, Prime Minister Antonio Costa said.

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“We are available to contribute to this goal with the reduction of the VAT,” Costa said at a debate in parliament in Lisbon on Wednesday. He didn’t provide details about the possible tax cut.

The Socialist government, which holds a majority in parliament, is also working with retailers and food producers to try to bring down prices, Costa said.

Read more: Portugal’s Sonae Says Supermarkets Will Limit Price Increases

Portugal currently has three VAT rates: a standard rate of 23%, a rate of 13% and a reduced rate of 6%. The lower rates are applicable to some food products. Portugal’s average annual inflation rate reached 7.8% in 2022, the highest in 30 years, according to the country’s statistics institute.

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