The Algarve as a holiday destination has yet again nearly topped the annual (British) Post Office survey for best prices.
It was in second place after Sunny Beach in Bulgaria.
The survey found that prices for essentials such as dining out in the Algarve were some 22% lower than they had been last year, partly due to a stronger pound.
While prices fell in all the popular destinations surveyed, those in the Algarve had the biggest fall.
“In the Algarve a three-course evening meal with wine costs just over £16 for two people, while lunch comes in at £12,” according to Andrew Brown of the Post Office. He added: “That’s less than half the price in other Eurozone resorts including Ibiza, Sorrento and Nice.”
Sorrento was the most expensive resort and the only area where prices actually rose was in Turkey.
The basket of items (see below) cost £44.02 in the Algarve compared to the £101.60 needed in the priciest area, Sorrento on the Amalfi coast, where costs were pushed up particularly by the cost of eating out.
While Ibiza remains more expensive than other Spanish resorts, the Costa del Sol was the most affordable after the Algarve.