Inflation in the Azores

Restaurant and hotel prices up 23%

Supermarket trolley inflation graphic

diariodosacores reports that the Azores are the region of the country where the highest percentages of price inflation in restaurants and hotels, transport and food products were recorded. Prices in restaurants and hotels increased by 23%, food products by 12% and transport by 13%. These are increases not experienced in Madeira, but the details are interesting nonetheless, as the trends will be similar.

The effects of inflation are registered in almost all classes of the regional basket, but with a special impact on these three categories, where increases exceed the national average.

Analyzing the SREA Consumer Price Index, it can be seen that, in one year, prices in restaurants and hotels in the Azores increased by 23.99%, only surpassed by Madeira (27.34%), while in the other regions of the country vary between 10 (Alentejo) and 23% (Algarve). The national average for inflation in this category is 16.33%.

Transport is the second category that suffered most from inflation in the Azores, an increase of 13.57%, the highest in the country, whose average is 10.43%. Next come food products and non-alcoholic beverages, with an increase of 12%, while the national average was 15.34%.
Clothing and footwear, with minus 4.54%, and health, with minus 1.45%, are the only two categories in which prices have dropped.

Oil up 36% and chicken 25%

The price index started to rise just last year, but has been increasing especially since the beginning of the war in Ukraine. 

On Monday, the National Statistics Institute (INE) revealed that inflation in August reached 8.9% in the country (6.87% in the Azores and 5.1% in Madeira), with food products among the main contributors. for that value. 

The prices of poultry meat and edible oils stand out, which had a variation, respectively, of 25.1% and 36.2% between February and August. According to the statistics office, the oil and fat subgroup recorded “significant increases from March onwards”, reaching maximums in May. 

The variation in this segment since Russia invaded Ukraine, on 24 February, was 22.9% up to August, with emphasis on the behaviour of edible oil prices, which recorded the greatest variation in the same period — namely, from 36.2%.

Increases in meat and fruit prices 

With a change of 16.7%, meat prices registered the second biggest increase since the beginning of the conflict, in particular poultry meat (25.1%) and pork meat (23.4%).

Meat was the food product that most contributed to the change in the price index since February, totalling 0.685 percentage points, of which 0.237 percentage points are attributed to poultry meat and 0.202 percentage points to pork, indicates the INE.

Fruit prices even started to decline, but from March onwards they registered significant increases, showing a rise of 13.7% between February and August and contributing with 0.289 percentage points to the variation of the CPI.  In this subgroup, fresh and refrigerated fruit stands out especially, which increased by 14.4% and whose contribution stood at 0.268 percentage points.

Bread and cereal climbs

The statistics office also mentions the 10.7% increase in the bread and cereals segment, with emphasis on other bakery products, cookies and crackers (12.5%) and bread (8.8%). 
Among food products, this was the second subgroup that contributed the most to the price index – 0.457 percentage points. Here, 0.187 percentage points are attributed to other bakery products, cookies and crackers and 0.177 percentage points to bread.

Inflation also for milk, fish and eggs

Finally, the milk, cheese and eggs and fish sectors registered a price change of 10.3% and 8.7%, respectively, in the period under analysis. 

Thanks to PeterA for the link

COVID-19 in Madeira: updates can be found in an earlier post

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