A new Eurostat dataset, published by Statistics Norway, has highlighted wide disparities in price levels across Europe in 2025, showing significant differences in the cost of living between countries.


The statistics use Purchasing Power Parities (PPPs) to compare how many currency units are required to purchase the same basket of goods and services across different nations. The EU27 average is set at 100.


According to price level indices for household final consumption, Iceland recorded the highest level in Europe at 173.5. Switzerland followed closely with 171.3, while Denmark stood at 139.7. Other Nordic countries also reported elevated price levels, including Norway at 128.6, Sweden at 121.0, and Finland at 120.8.


Among EU member states, Ireland (136.2), Luxembourg (131.5), and Denmark ranked among the most expensive countries.


At the lower end of the scale, North Macedonia recorded the lowest price level index at 54.8. It was followed by Bosnia and Herzegovina at 59.2 and Türkiye at 59.6. Bulgaria (62.5), Romania (65.1), and Montenegro (66.1) also remained well below the EU average.


The data also provides detailed comparisons across spending categories. For food and non-alcoholic beverages, Iceland again topped the ranking at 155.8, with Switzerland at 155.9 and Norway at 133.1.


In the category of alcoholic beverages, tobacco, and narcotics, Iceland registered the highest level at 230.6, followed by Norway at 203.8 and Ireland at 202.7.


For housing, water, electricity, gas, and other fuels, Switzerland recorded the highest price level at 213.1, with Ireland at 189.7 and Iceland at 178.0.


In transport, Iceland led at 147.5, followed by Denmark at 127.3 and Switzerland at 126.5. For restaurants and accommodation services, Switzerland was the most expensive at 163.1, with Iceland at 173.2 and Denmark at 142.0.


The report also includes volume indices for real expenditure per capita and price level indices for actual individual consumption (AIC). Luxembourg recorded the highest GDP per capita volume index at 239, followed by Ireland at 238 and Norway at 159.


For actual individual consumption, Luxembourg led at 145, followed by Norway at 128 and Iceland at 115.


The AIC price level indices showed Iceland at 183.7, Switzerland at 181.0, and Luxembourg at 148.0, while the lowest levels were recorded in North Macedonia (49.7), Türkiye (52.2), and Bosnia and Herzegovina (55.7).


Eurostat noted that the figures published in June are preliminary, with final data expected in December. The price level indices compare countries by setting the EU27 average equal to 100. Household final consumption covers goods and services purchased and consumed by households across participating countries.


By Vafa Guliyeva