Over the past five years, food prices in Europe have risen significantly, but in most countries, the minimum wage has increased faster. Exceptions were Malta, Spain, and France. This comparison is supplemented by the ranking of minimum wages in Europe.
Euronews Business reports that it compared food prices and minimum wages in 26 countries from August 2021 to August 2026.
Food Prices in Europe Have Increased Over Five Years
In EU countries, food and non-alcoholic beverages increased in price by an average of 34% during this period. The highest increase was recorded in Hungary, while the lowest was in Cyprus. Among the 35 European countries considered in a broader comparison, prices rose the slowest in Switzerland.
Food prices increased the most in the following EU countries:
- Hungary - by 57%;
- Bulgaria - by 54%;
- Romania - by 53%.
The lowest figure among EU countries was in Cyprus - 21%. In a broader group of European countries, Turkey stands out: there, prices rose by 752%. Euronews links this to years of high inflation and the depreciation of the lira.
Among the largest economies in the EU, the increase was 25% in France, 30% in Italy, 34% in Germany, and 35% in Spain. Prices were affected, in particular, by the costs of energy resources, fertilizers, and transportation. The dynamics should be considered together with food prices in stores.
The Purchasing Power of the Minimum Wage Changed Unevenly
In most countries, the increase in the minimum wage outpaced food price hikes. However, in three out of 26 countries, workers earning the minimum wage can afford less food than in 2021:
- Malta - by 6% less;
- Spain - by 5% less;
- France - by 4% less.
The greatest increase in purchasing power was in Serbia and Montenegro - by 37%. A worker who could buy 100 conditional baskets of food in August 2021 could purchase 137 after five years.
In Germany, this indicator increased by 9%, in Ireland by 10%, in Greece by 7%, in Belgium and the Netherlands by 6%, and in Portugal by 3%. The comparison shows the change in the ability to buy food for the entire accrued minimum wage and does not account for taxes, rent, and other expenses. More about the purchasing power of wages - in the previous material.