Food is a major expense for households across Europe, making up about 11.9% of overall spending in the EU. In some countries, like Romania, that figure can rise to 20%.
Food prices vary widely. Eurostat provides a handy food price level index, where a basket of food set at €100 offers a comparison across nations. If a country scores above 100, it’s more expensive than average; below 100 means it’s cheaper.
In 2024, North Macedonia topped the list as the cheapest country for food, with a typical basket costing just €73—27% lower than the EU average. On the opposite end, Switzerland has the highest food prices, with a basket costing €161.1, which is 61.1% above the EU average.
Interestingly, North Macedonia is an EU candidate nation working towards membership and has trade agreements with the EU. In contrast, Switzerland isn’t part of the EEA but relies on numerous bilateral agreements with the EU.
Within the EU, Romania stands out at €74.6 as the cheapest option, while Luxembourg leads with the highest prices at €125.7. Other countries like Turkey (€75.7) and Bulgaria (€87.1) also enjoy lower food prices compared to the EU average.
Food costs can take a significant bite out of budgets. Ilaria Benedetti, an associate professor at the University of Tuscia, explains that structural factors, including production costs and global market shifts, heavily influence this variance. Countries with smaller, more open economies often face higher costs during global disruptions, like the pandemic or the Russia-Ukraine conflict.
“In several Eastern and Southeastern European countries, food makes up over 20% of household spending,” Benedetti notes. In wealthier nations, this percentage is usually below 12%, making any price increase weigh more heavily on lower-income families.
Alan Matthews, a professor from Trinity College Dublin, adds that wages play a crucial role in food prices. Countries with higher average wages, such as Denmark, often have pricier food due to higher labor costs in agriculture and retail. Tax differences can also contribute; countries like Ireland impose lower VAT on food, while Denmark maintains a higher rate.
Consumer preferences further impact food prices. In wealthier areas, shoppers may prioritize organic or premium products, which can drive up costs.
Jeremiás Máté Balogh, an associated professor at Corvinus University of Budapest, stresses that these price differences matter for food security. “High-income nations can manage higher food costs, while lower-income households in Eastern Europe bear a heavier burden, despite nominally lower prices,” he explains.
In short, food prices across Europe reflect a complicated mix of economic factors, impacting households differently based on their income and spending habits. Understanding these nuances can help reveal why food costs can vary greatly even within the same continent.
For more insights, you can explore Eurostat’s data on food prices here.
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