How Much Do Prices Really Vary Across Europe?

Table of Contents

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• Price Level Indices: How are these findings calculated
• Price Level Index for final household expenditure 2025
• EU’s least and most expensive countries
• Comparing consumer prices across Europe
• Why do some prices vary more than others?
• Goods vs Services
• Why comparative price data is important for business

Eurostat’s data reveals significant differences in the cost of consumer goods and services across Europe.

Europe may be an increasingly integrated economic market, but the cost of everyday goods and services is far from uniform.

Where you live can make a substantial difference to what you pay for groceries, electricity, clothing, transport and accommodation. Even countries sharing the same currency can experience markedly different price levels.

According to Eurostat’s analysis published in June 2026, consumer price levels continue to vary considerably across European countries.

Price Level Indices: How Are These Findings Calculated?

Eurostat’s 2025 analysis draws on price surveys covering more than 2,000 consumer goods and services across 36 European countries participating in the Eurostat–OECD Purchasing Power Parities (PPP) programme. The group of participating countries includes the 27 EU countries, 3 EFTA countries (Iceland, Norway and Switzerland) and 6 date candidate countries (Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Serbia and Türkiye).

The findings reveal where price levels are highest and lowest, which categories show the greatest differences, and how relative prices have changed over time.

These comparisons use Eurostat’s Price Level Index (PLI), which measures the relative price levels of comparable goods and services across countries, using purchasing power parities and exchange rates.

The EU average is set at 100.

A country with an index of 120 has a price level approximately 20% above the EU average, while an index of 80 indicates prices approximately 20% below it.

This provides a more meaningful basis for comparing price levels across countries than exchange rates alone.

The figures also highlight why comparing consumer markets requires more than simply looking at income levels, economic output or exchange rates. Understanding relative prices adds important context to comparisons between economies.

Price Level Index for Final Household Expenditure 2025

Source: Eurostat

*EA21 refers to the 21 European Union countries that use the euro as their official currency.

The EU’s Most and Least Expensive Countries

In 2025, Denmark recorded the highest overall consumer price level among the European Union’s 27 member countries, at almost 40% above the European Union (EU) average.

At the other end of the scale, Bulgaria recorded the lowest price level, at approximately 37% below the EU average.

These figures refer to overall household final consumption expenditure on goods and services in the above table.

They illustrate the substantial differences in consumer price levels that exist within the EU, even as countries participate in a shared economic market.

Comparing Consumer Prices Across Europe

To explore these differences further, we’ve compared price level indices (PLI) across a selection of consumer goods and services, to highlight how prices vary by category and country.

Source: Eurostat

In reference to a select range of categories, we cast our lens on two categories of goods and services that impact households broadly: Food and Non-Alcoholic Beverages and Household Energy prices.

Food & Non-Alcoholic Beverage Prices

The category includes everyday essentials such as bread, cereals, meat, fish, dairy products, fruit, vegetables and non-alcoholic beverages.

Highest Price Level:

Luxembourg

Food Prices: How Much Does Location Matter?

Food is one of the most universal household expenses, yet its cost differs significantly.

In 2025, Luxembourg recorded the highest price level for food and non-alcoholic beverages among EU countries, at 22% above the EU average.

Romania recorded the lowest, at 20% below the average.

However, relative food prices should not be confused with food affordability.

A country with lower food prices may also have lower household incomes. Assessing affordability requires additional measures of income and expenditure, which are outside the scope of this analysis.

Household Energy Prices

The category covers electricity, gas and other fuels used by households.

Highest Price Level:

Germany

Household Energy Prices: Some of Europe’s Biggest Differences

Energy is another area where European consumers experience markedly different costs.

Germany had the highest household energy price level among EU countries in 2025, at 22% above the EU average.

Hungary recorded the lowest, with prices at just 39% of the EU average.

These differences highlight the variation in domestic energy price levels across European countries.

For organisations comparing markets or assessing economic conditions, understanding household energy price differences can provide valuable context.

However, Eurostat’s household energy category should not be treated as a direct measure of commercial or industrial energy prices as it measures prices paid by households, not the prices businesses pay for energy.

Why Do Some Prices Vary More Than Others?

Not all consumer goods and services exhibit the same degree of price variation across Europe.

Among the categories of food and non-alcoholic beverages, alcoholic beverages and tobacco, clothing, and footwear, Eurostat identifies alcoholic beverages and tobacco as having the greatest price dispersion.

The explanation is largely related to taxation.

As Eurostat notes: This is mainly due to large differences in taxation on these products across the 36 countries.

Among EU countries, Ireland recorded the highest price level for alcoholic beverages and tobacco, while Bulgaria recorded the lowest.

The findings demonstrate how national taxation differences can influence the relative cost of products across European markets.

Other categories show substantially less variation.

For example, the price differences for information and communication equipment were relatively small across EU countries.

National price level indices provide a high-level comparison, but the underlying categories reveal a more nuanced picture. Price differences between countries can be substantial for some goods and services, yet relatively minor for others.

Services vs Goods

Services present another interesting dimension of Europe’s price landscape.

The data shows prices for services generally vary more between countries than prices for goods.

The report attributes this partly to the higher proportion of labour involved in delivering services and the considerable differences in wages across European economies.

The contrast is visible across several categories.

In 2025:

• Restaurants and hotels: Denmark recorded the highest price levels among EU countries, while Bulgaria recorded the lowest.
• Transport services: Denmark was again the most expensive, with Bulgaria the least expensive.
• Communication services and equipment: Belgium recorded the highest price level, while Romania recorded the lowest.

For businesses operating across borders, these differences provide useful context for evaluating service costs, market conditions and pricing environments.

They also demonstrate why category-specific comparisons can be more informative than relying on a single national price index.

Why Comparative Price Data is Important for Business

Understanding price differences across Europe has applications far beyond household cost-of-living comparisons.

For businesses, researchers and analysts, comparative price data can help inform:

• Market research and expansion: Understanding relative consumer price levels when evaluating new markets.
• Pricing and commercial strategy: Providing economic context for comparing product and service pricing across countries.
• Consumer and economic analysis: Supporting analysis of household expenditure, purchasing power and consumption patterns when combined with other relevant indicators.
• International benchmarking: Making more meaningful comparisons between economies with different currencies and price levels.

Importantly, price level indices are not measures of inflation. They compare relative prices between countries at a point in time.

On the other hand, inflation measures how prices for goods and services change over time.

Used alongside household expenditure, income, demographic and other economic indicators, comparative price data can help organisations develop a more complete understanding of European markets.

Explore Europe’s Economic Data with Data Army Intel

Eurostat provides extensive statistical information covering European economies, populations, industries and markets.

Through Data Army Intel, organisations can access curated Eurostat datasets on Snowflake Marketplace, supporting analysis across a broad range of economic and business applications.

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