Inflation Rate in Madeira Rises to 3.5% in 2025 Amidst National Decline
Madeira GuideThe inflation rate in Madeira climbed to 3.5% in 2025, significantly outpacing the national average of 2.3%. This increase was primarily driven by a surge in restaurant and hotel prices, which rose by 10%.
In 2025, the Autonomous Region of Madeira experienced an inflation rate of 3.5%, which is higher than the previous year's rate of 3.3%. This was revealed by the Regional Directorate of Statistics on January 13, 2026.
The rise in inflation in Madeira is notable when compared to the national average, where Portugal’s inflation fell to 2.3% in the same year. This divergence highlights regional economic challenges and the unique market dynamics within Madeira.
Key Drivers of Inflation
The significant increase in inflation within Madeira was largely fueled by the hospitality sector, with restaurants and hotels recording a remarkable price increase of 10%. This sector-specific inflation suggests a strong demand for tourism-related services, possibly driven by a rebound in tourist activity post-pandemic.
Another factor contributing to the inflation rise in Madeira was the core inflation rate, which excludes more volatile items such as unprocessed food and energy. The core inflation rate stood at 3.2%, though it was slightly lower than the 3.7% observed in 2024.
Comparative Analysis with National Trends
Nationally, Portugal's inflation rate decreased to 2.3% in 2025 from 2.4% in 2024, as reported by the National Institute of Statistics. The core inflation rate in mainland Portugal showed a similar trend, with a slight increase from 2.0% to 2.1% by December.
This contrast between Madeira and the mainland underscores the specific economic conditions of the island, which may include factors like tourism dependency, import costs, and local economic policies.
Implications for Residents and Tourists
For residents of Madeira, the rising costs, especially in essential services like dining and accommodation, can impact household budgets and lifestyle choices. Tourists, on the other hand, may experience higher costs during their stay, which could influence travel plans and spending habits.
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Madeira Guide
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