Eurostat ranks Europe’s most and least expensive countries

Eurostat’s latest price‑level indices show that consumer‑price differences across Europe can be nearly four‑fold. Using a basket of over 2,000 goods and services, the index sets the EU average at 100. Iceland tops the list with prices 83.7 % above the EU average, while Switzerland follows at 81 % above. Within the EU, Luxembourg records the highest cost level, and Romania the lowest. When candidate and EFTA members are added, North Macedonia becomes the cheapest country at an index of 49.7, widening the overall price gap to 3.7 times between the most and least expensive nations.

Western and Northern European states such as Denmark (40.2 % above average), Ireland (39.6 %), Norway (38.4 %), Sweden and Finland also rank among the costliest, whereas Central and Eastern European countries remain markedly cheaper. The data reflect only price differences; wages are not factored in, meaning that high‑price nations like Switzerland still enjoy strong purchasing power due to high incomes. Major economies show modest variations: Germany’s prices are 9.1 % above the EU average, Spain’s 8.9 % below.

These figures highlight how regional price disparities intersect with local earnings to shape living standards across the continent.