Eurostat: Lowest consumer prices in Europe are in Romania

With a price level for consumer goods and services of 55.5% of the EU average, Romania had the lowest consumer prices in Europe last year, according to Eurostat.

In 2021, price levels for consumer goods and services differed widely across Europe. Energy prices in Romania (59.1% of the EU average), Communications (38.6% of EU average) and HoReCa (53.5% of EU average) were well below those in other EU states, but the prices for tradable goods were rather close: 98.2% of the EU average for consumer electronics, 94.4% for consumer appliances, 93.5% for footwear.

Notably, the headline price level index is weighted based on each country’s consumption basket - which, in the case of Romania (due to lower household budgets), is skewed towards a high share of energy bills and food.

Food prices in Romania are 69% of the EU average prices, according to Eurostat, but the range of products on the local market differs significantly from those sold in more developed countries hence the differential is perhaps much smaller.

The highest price level among the EU member states was observed in Denmark, 40 % above the EU average, while in Romania and Bulgaria, the price level was 44 % below the EU average.

The results are based on price surveys covering more than 2 000 consumer goods and services which were conducted across 36 European countries participating in the Eurostat-OECD Purchasing Power Parities (PPP) program.

The group of participating countries includes the 27 EU Member States, three EFTA countries (Iceland, Norway and Switzerland), five candidate countries (Albania, Montenegro, North Macedonia, Serbia and Turkey) and one potential candidate country (Bosnia and Herzegovina).

(Photo: Wavebreakmedia/ Dreamstime)

iulian@romania-insider.com

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Eurostat: Lowest consumer prices in Europe are in Romania

With a price level for consumer goods and services of 55.5% of the EU average, Romania had the lowest consumer prices in Europe last year, according to Eurostat.

In 2021, price levels for consumer goods and services differed widely across Europe. Energy prices in Romania (59.1% of the EU average), Communications (38.6% of EU average) and HoReCa (53.5% of EU average) were well below those in other EU states, but the prices for tradable goods were rather close: 98.2% of the EU average for consumer electronics, 94.4% for consumer appliances, 93.5% for footwear.

Notably, the headline price level index is weighted based on each country’s consumption basket - which, in the case of Romania (due to lower household budgets), is skewed towards a high share of energy bills and food.

Food prices in Romania are 69% of the EU average prices, according to Eurostat, but the range of products on the local market differs significantly from those sold in more developed countries hence the differential is perhaps much smaller.

The highest price level among the EU member states was observed in Denmark, 40 % above the EU average, while in Romania and Bulgaria, the price level was 44 % below the EU average.

The results are based on price surveys covering more than 2 000 consumer goods and services which were conducted across 36 European countries participating in the Eurostat-OECD Purchasing Power Parities (PPP) program.

The group of participating countries includes the 27 EU Member States, three EFTA countries (Iceland, Norway and Switzerland), five candidate countries (Albania, Montenegro, North Macedonia, Serbia and Turkey) and one potential candidate country (Bosnia and Herzegovina).

(Photo: Wavebreakmedia/ Dreamstime)

iulian@romania-insider.com

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