Which European Country has the Highest Prices in Markets?

Which European Country has the Highest Prices in Markets?

The price of consumer goods and services varies across European countries. Price Level Indices (PLIs) compare price levels that are calculated using purchasing power parties.

The following results are based on the survey of 2000 consumer goods and services conducted across 37 European countries. 27 European member states were participating in the Eurostat-OECD Purchasing Power Parties (PPP) program.

Overall price levels in European countries In 2019, the highest price level for consumer goods and services was observed in Denmark, i.e., 41% above the average price level in Europe. The lowest price level was observed in Bulgaria (47% below the average price level).

Observing the price level difference is important in the development analysis. The country with higher relative prices could have a healthier economy.

Price levels for food, beverages, tobacco, clothing, and footwear The price level for food, non-alcoholic beverages, clothing, and footwear is high in Denmark. But, the price level for alcoholic beverages and tobacco is high in Ireland.

Among all the European countries, Switzerland has the highest price level for food as well as non-alcoholic beverages.

Norway has the highest price level for alcoholic beverages and tobacco, whereas Iceland has the highest price level for clothing and footwear.

Overall, the highest price dispersion has been found for alcoholic beverages and tobacco.

It is because of the tax system on these products across the 37 European countries.

Comparatively, the lowest price dispersion is found for clothing and footwear.

The lowest price level for food and non-alcoholic beverages is North Macedonia. Turkey has the lowest price level for clothing and footwear, whereas Romania has the lowest price level for food and non-alcoholic beverages.

Price levels for energy, furniture, household appliances, and consumer appliances Denmark has the highest price level for energy like electricity and gas, and Turkey has the least price level for energy.

Price dispersion is high for energy, and it is low for consumer appliances.

Luxemburg shows the highest price level for furniture, whereas Bulgaria shows the lowest. For electronics, France has the highest price level. Malta has the highest price level for household appliances.

Overall, Luxemburg shows the highest price level for furniture and furnishings. And Iceland shows the highest price level for household appliances and consumer appliances.

The lowest price level for household appliances and consumer electronics was observed in Poland among the 37 European countries.

Price levels for personal transport equipment, transport services, communication, restaurants, and hotels Price dispersion is significantly high for transport services, communication, restaurants, and hotels, whereas the price dispersion is low for personal transport equipment.

The highest price level for personal transport equipment was observed in Denmark and Norway, whereas the lowest price level is found in Slovakia.

Among all the 37 European countries, the highest price level for transport services is found in the Netherlands, whereas the least price level was observed in Turkey.

For communication, the highest price level was reported in Greece, and the lowest price level was reported in Poland.

The most expensive restaurants and hotel services are in Iceland, whereas the lowest prices for these were observed in North Macedonia. But, among the European member states, these positions were taken by Denmark and Bulgaria, respectively.