According to Miguel Albuquerque, Madeira's inflation, which is higher than the national average, is mainly due to the impact of tourism and services on the regional economy. The President of the Government rejected the view that the difference is explained by food prices, arguing that these are about 3.17% cheaper in the Region.
Albuquerque highlighted that inflationary pressure particularly affects prices in accommodation, hotels, restaurants, and transport linked to tourism. In an economy where tourism accounts for about 30% of GDP, the appreciation of services leads to greater inflationary pressure in these sectors. However, he also suggested that higher prices might reflect an improvement in the quality of the offerings.
