Madeira's Consumer Price Index Remains Steady at 3.3%
In July 2024, as reported by DREM, Madeira recorded a 3.3% average annual change in the Consumer Price Index (CPI), maintaining the same rate as observed in the previous month. The underlying inflation indicator, which excludes unprocessed food and energy products, also held steady with a rate of 3.5%.
Services More Expensive, Goods At 2,3%
Within the broader inflation metrics, the services sector in Madeira experienced a significant increase with a 4.7% rise, while goods registered a more modest inflation rate of 2.3%. The most notable increases were seen in the "Restaurants and Hotels" category, which surged by 7.9%, and the "Communications" sector, which rose by 5.7%. Conversely, the "Clothing and Footwear" category was the only sector to see a decline, with a decrease of 0.5%.
In the Autonomous Region of Madeira (RAM), in year-on-year terms, that is, comparing July 2024 with the same month of 2023, the price variation was 3.9%, an increase of 0.4 percentage points (p.p.) compared to the previous month. At the national level, this rate was 2.5%, which is 0.3 percentage points lower than the rate recorded in June 2024.
Madeira's Inflation Considerably Higher Than National Average
When comparing July 2024 to the same month in 2023, Madeira's year-on-year price variation was 3.9%, an increase of 0.4 percentage points from the previous month. This rate is higher than the national average, where the CPI recorded a 2.5% increase, down 0.3 percentage points from June 2024.
Housing Rents Continue to Climb in Madeira
In July 2024, the average housing rent per square meter in Madeira rose by 0.6% compared to the previous month, matching the increase observed in June. Year-on-year, rents increased by 7.5%, slightly higher than the 7.2% increase noted in June. This trend reflects ongoing pressures in the housing market, with rental costs continuing to rise steadily.
Is 3,9% A HealthY Inflation Rate?
No. A healthy inflation rate is generally considered to be around 2% per year. This level is seen as optimal by many economists and central banks, such as the Federal Reserve in the United States and the European Central Bank, because it balances the need for economic growth with the risks of both high inflation and deflation.
Source: DREM
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