Inflation in Madeira Increases to 3.5% in 2025

Regional Inflation at 3.5% Outpaces National Rate of 2.3%

Data from the Regional Directorate of Statistics (DREM) shows Madeira’s cost of living is rising faster than the rest of Portugal. The inflation rate in Portugal is expected to be around 2.3% in 2025. With an inflation rate of 3.5% in Madeira it is therefore roughly 52% higher than the national average.

• Madeira Annual Inflation: 3.5%

• Portugal National Average: 2.3%

• Monthly Change (Dec 2025): +0.1%

Housing and Essential Utilities Rise by 6.3% in December

Specific sectors faced much higher price pressures than the general average. Housing and energy costs led the increase at the end of the year.

• Housing & Utilities: +6.3%

• Health Services: +7.2%

• Restaurants & Hotels: +5.3%

• Clothing & Footwear: -3.6%

Core Inflation Reaches 3.9% Excluding Energy and Food

The "core" rate in Madeira, which excludes volatile items like fuel and food, stood at 3.9% in 2025, showing that price hikes are deeply rooted in the local economy. In other words, inflation isn’t just driven by temporary spikes in fuel prices - regular prices for services and many everyday items are rising at a sustained pace. This usually reflects deeper structural factors such as local demand, housing and labour costs, and sector‑specific price dynamics, rather than short‑lived external shocks.

Inflation in Madeira Throughout the Years

Comparison of the 2025 Inflation Rate in Portugal and Madeira

The compound inflation from 2015 on is therefore 22.6%. An item costing €100 in 2015 would cost about €122.60 in 2025, even though several years had negative inflation. The post-2021 surge dominates the overall outcome.

Source: DREM