Prices in European resorts have plunged for self-catering tourists thanks to cost-cutting supermarkets Aldi and Lidl springing up and keeping local prices down.
The Algarve has seen the supermarkets open along the coastline, resulting in a 26.5 per cent fall in the Portuguese destination's prices to £41.04 for 20 typical food staples, including a loaf of bread, wine, milk, eggs and toilet roll.
A Post Office Travel Money Self-Catering on a Shoestring Report found that self-catering costs have fallen heavily across much of Europe, as one in five Brits plan to make a self-catering trip abroad this summer.
The survey found that a third of the UK holidaymakers chose a self-catering holiday specifically to keep meal costs to a minimum, while 54 per cent said they shopped in local mini-marts rather than larger supermarkets.
A Post Office spokesman told the Daily Mail: "Echoing UK trends, cost-cutting Aldi and Lidl supermarkets have sprung up and this has resulted in a fall in prices."
With the added strength of the pound against the euro, budget stores Aldi and Lidl have pushed food and drink prices down 26 per cent in the Algarve.
The Post Office reveals that Spain's Costa Blanca is even cheaper and has overtaken the Algarve to emerge as this year's 'best buy' tip for self-caterers. Prices have fallen nearly 38 per cent to £36.69 for 20 tourist items.
The Western Med is looking cheaper than the Eastern Med, with resort areas in Spain and Portugal lower than those in Greek destinations, such as Corfu and Crete. Local prices on the two islands have offset the benefit of the stronger pound.
As a result, although prices are down in supermarkets by 5.4 per cent in Corfu (£63.23) and 10 per cent in Crete (£64.64), the negative impact will be felt more sharply in mini-markets. The shopping in Turkey is far more expensive than in Spain or Portugal at £68.67 for self-caterers, while Cyprus supermarkets remain the most expensive at £68.97.
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