Hungary, one of the cheapest countries in the EU

In 2011, price levels for consumer goods and services differed widely across the European Union. The lowest price levels were found in Bulgaria and Denmark had the highest price level. Compared to the EU27 average, Hungary’s prices are at 62%.

According to data released by Eurostat, Denmark (142% of the EU27 average) had the highest price level, followed by Sweden (128%), Finland (125%) and Luxembourg (122%). The lowest price levels were found in Bulgaria (51%).

Price levels for food and non-alcoholic beverages in 2011 ranged from 67% of the EU27 average in Bulgaria to 136% of the average in Denmark.

Differences in price levels between the 27 EU member states were less for this product group than for total goods and services. For alcoholic beverages and tobacco, prices were lowest in Hungary (63% of the average) and highest in Ireland (163%). This large price variation is mainly due to differences in taxation of these products among the member states.

Clothing is one of the groups of products showing a smaller price variation among the member states, with Bulgaria (75% of the average) the cheapest and Sweden (133%) the most expensive. Consumer electronics is another group of products where prices differed less among the member states, ranging from 89% of the average in Poland to 125% in Malta. In this product group Hungary is the closest to the EU27 average (101%).

Excluding Denmark (167% of the average), price differences among the member states were also limited for personal transport equipment, with levels varying from 83% of the average in Bulgaria to 122% in Portugal. In this group, Hungary is also relatively close to the average (92%).

For restaurants and hotels, price variations were more significant, with price levels ranging from 45% of the average in Bulgaria to 154% of the average in Denmark. Hungary (52%) is the third cheapest country on Eurostat’s ranking after Bulgaria and Romania (50%).

(Source: portfolio.hu)