Miguel Albuquerque, President of the Regional Government of Madeira, explained that the region's inflation is higher than the national average primarily due to the impact of tourism and services on the economy.
Albuquerque rejected the notion that food items are the main drivers of this difference, stating that they are, in fact, about 3.17% cheaper in Madeira. The inflationary pressure, according to the official, stems mainly from prices in sectors such as accommodation, hotels, restaurants, and transport linked to tourism.
The president argued that in an economy where tourism accounts for about 30% of GDP, the appreciation of services leads to greater inflationary pressure. However, he also suggested that higher prices could reflect an improvement in the quality of the offering.
