Recent data published by Eurostat for 2024 year bring an interesting image of Poland's position against the background of the European Union. Our country is at the top of the country with the lowest consumer price levels, placing 3rd from the end. According to the analysis, the overall price level of consumer goods and services in Poland is only 72% of the EU average. This is simply a consequence that puts us in 1 line with Romania and Bulgaria as 1 of the most affordable locations in the Community. On the another hand, there are Scandinavian and Western countries, with Denmark in the lead, where the same basket of products and services should be paid 43% more than average in the EU.
General price level: Poland in contrast to the remainder of Europe
Data Eurostat Price Level Indices (PLI) are a key tool for comparing the cost of surviving in individual associate States. This indicator shows how much it costs the same standard basket of goods and services in a country in relation to the EU-wide average of 100.
According to the study for 2024 year, the price scenery in the EU is highly diverse. At the top of the list of the most costly countries were:
- Denmark (level indicator 143% EU average)
- Ireland (138%)
- Luxembourg (133%)
This means that for the same products and services for which the EU statistical resident pays EUR 100, The Danish must pay 143 euros.
At the second price pole are the countries of Central and east Europe, where the cost of surviving is much lower. In this group, Poland occupies prominent 3rd place from the end:
- Bulgaria (level indicator 60% EU average)
- Romania (64%)
- Poland (72%)
Poland score at level 72% means that the cost of surviving a household is on average 28% lower than the average in the European Union. This information is crucial both from the position of the inhabitants and for assessing the competitiveness of the Polish economy.
Category analysis: Where is Poland the cheapest?
Report Eurostat allows for a deeper analysis of the different categories of expenditure. It is here that the top disparities, frequently arising not only from the strength of the economy, but besides from the fiscal policy of the country.
The largest price differences across the European Union were recorded in the category alcohol and tobacco products. In the most costly in this respect Ireland prices of these products reached a staggering level 205% EU average. advanced on this list were besides Finland (175%) and France (137%). In turn the cheapest was in Bulgariawhere prices were simply 69% EU average. Polandwith consequence 83%, it was included in the group of countries with the lowest prices in this category, alongside Slovakia (also 83%). Explains himself Eurostat, specified immense price fluctuations are mainly due to differences in taxation those products, including rates of excise duty, which in many Western countries are a tool of health-promoting policy.
The second category with the largest price differences is restaurants and hotels. Here again she was headed Denmark (148%) and behind her Ireland (129%) and Finland (127%). The lowest price levels were recorded in Bulgaria (53%), Romania (69%) and Hungary (72%). Although Poland has not been mentioned in this close lead, its overall low price index suggests that hotel and catering services are among the cheapest in the EU.
Third place in price volatility clothing. The most people paid for clothes Denmark (133%), Sweden and Finland (after 120%). The lowest was in Bulgaria (79%) and Hungary and Romania (after 85%).
Expert comment: What does low prices mean for the economy and citizens?
Data Eurostat At first glance they paint an optimistic image of Poland as an highly affordable country. This is undoubtedly an asset from the position of tourism and for abroad investors who can number on lower operating costs. However, the full explanation of these data requires a deeper look and consideration of the purchasing power of Polish society.
The low price level is inextricably linked to the lower levels of wages compared to Western European countries. The price level index does not tell us how "easy" it is to live in a given country, but only compares nominal prices. The real measurement of the wealth of society is the purchasing power parity (PPS), which combines prices with income. For a Danish citizen earning an average Danish salary, a price of 143% of the EU average may be little palpable than a price of 72% for a Pole earning a national average.
Nevertheless, these data clearly confirm that Poland is in the process Economic convergence – gradually catching up with the more prosperous countries of the Union. Lower prices are characteristic of economies at this phase of development. As wages, investments and productivity increase, prices in Poland are expected to gradually approach the EU average. This is simply a natural and desirable process, proving the wealth of society. The current data is simply a valuable mention point, showing both the achievements to date and the distance that inactive separates us from the economical core of the European Union.
Read more:
Poland in the Head of the cheapest EU countries. Analysis of Eurostat data on Life Costs for 2024 Year
