Although food prices in some countries are lower than in the European Union as a whole, households in these countries often spend a larger share of their budget on food, reports N1.
Food is one of the largest household expenditures in Europe, accounting for an average of around 11,9% of total consumption in the EU, and in some countries, such as Romania, this share rises to 20%.
Food prices vary considerably across Europe. Eurostat's food price level index provides a good basis for comparison. If the average EU food basket is set at €100, the index shows how much the same basket would cost in each individual country, it says. Euronews.
A price level above 100 means that the country is more expensive than the European average, while a value below 100 indicates lower prices.
North Macedonia is the cheapest
According to Eurostat data, North Macedonia was the cheapest country for food among 36 European countries in 2024. A standard food basket there cost 73 euros, which is 27% less than the EU average.
On the other hand, Switzerland is the most expensive country – food prices there they are 61,1% higher than the EU average, and the same basket costs 161,1 euros.
North Macedonia is a candidate country for EU membership – it is not yet a member, but has active trade agreements with the Union – while Switzerland is not part of the European Economic Area (EEA) and bases its cooperation with the EU on a network of bilateral agreements.
Within the EU, Romania (74,6 euros) has the lowest food price level, while Luxembourg (125,7 euros) is the most expensive. Food is 25,4% cheaper in Romania and 25,7% more expensive in Luxembourg than the EU average.
After Switzerland, the three most expensive countries include two other members of the European Free Trade Association (EFTA): Iceland (146,3 euros) and Norway (130,6 euros).
EFTA countries are not members of the EU, but they cooperate with the Union primarily in the areas of trade and market access, while maintaining greater national control over laws, borders and policies.
Food prices are at least 10% higher than the EU average in Denmark (119,3 euros), Ireland (111,9), France (111,5), Austria (110,9) and Malta (110,9).
Southeastern Europe and the Western Balkans as a whole record the lowest food prices.
Along with North Macedonia and Romania, Turkey (75,7 euros), Bosnia and Herzegovina (82,5), Montenegro (82,6) and Bulgaria (87,1) are significantly below the EU average.
Serbia (95,7 euros) and Albania (98,7) are also cheaper than the EU average.
Among the four largest EU economies, above-average food prices were recorded in Italy (104 euros) and Germany (102,9), while Spain (94,6) is 5,4% cheaper than the Union average.
Most Central European and several Eastern European countries remain below or close to the EU average, including Slovakia, Poland, the Czech Republic and Hungary.
Western Europe generally experiences higher food prices, with the Nordic countries among the most expensive in Europe.
Why price differences matter to households
Ilaria Benedetti, associate professor at the University of Tuscany, pointed out that structural factors such as production costs, supply chain integration and exposure to global shocks play a key role in price differences.
"Smaller and more open economies – often with currencies subject to stronger oscillations – experienced a stronger transmission of rising energy costs and agricultural inputs during the pandemic and the war in Ukraine," she told Euronews.
Benedetti emphasizes that these differences are important because their impact depends on how much of the household budget goes to food.
In a number of Eastern and Southeastern European countries, food accounts for more than 20% of household expenditure, while in richer economies this share is mostly below 12%.
"That's why the same price rise "It has significantly more severe consequences in lower-income countries," she added.
Labor costs and salaries
"The most important reason is the differences in income and wages," he said. Alan Matthews, professor at Trinity College Dublin, for Euronews.
Countries with higher average wages, such as Denmark and Switzerland, tend to also have higher food prices because labor costs in agriculture, processing, and retail are passed on to consumers.
"Differences in taxation, particularly in VAT rates on food products, also explain part of the differences," he added. Some countries, such as Ireland, have a lower or even zero VAT rate on food, while others, such as Denmark, apply the standard VAT rate to food.
Matthews also pointed out that food prices are influenced by consumer habits.
For example, consumers in Northern and Western Europe are more likely to buy organic or premium products, or prefer branded products over chain brands.
Consequences for food security
Jeremiás Máté Balogh, an associate professor at Corvinus University in Budapest, warned that these price differences have important consequences for food security, especially when viewed together with disposable income.
"While high-income countries can more easily withstand higher price levels, lower-income households in Central and Eastern Europe bear a disproportionately greater burden, even when nominal food prices are lower," he told Euronews.
Eurostat's price level does not take household income into account, so these values are not adjusted for purchasing power. For example, food is expensive in Denmark, but people there have higher disposable income, so they can afford more basic foods.
Source: N1
Photo: Pixabay
