Portugal leads the way, with the biggest fall in the Eurozone, dropping 22 percent compared with last year.


Prices have plunged in its top resort Sunny Beach for the second year running and at £37.39 the barometer basket of 10 tourist staples - lunch and evening meals, drinks, suncream, insect repellent and a daily newspaper – now costs 28 per cent less than two years ago in 2013.


While Sunny Beach is the clear winner on value in the survey of 14 European destinations, the biggest price falls over the past year have been in the Algarve.


A significant reduction in the cost of eating out has contributed to a 22 per cent drop in the barometer basket to £44.02 – making the Algarve eight per cent cheaper than third-placed Costa del Sol (£47.90).


As a result, the Portuguese favourite has overtaken the Costa to reach the runner-up spot.