The analysis shows the general level of prices for consumer goods and services included in household final consumption in Romania was 36% below the EU average, placing the country second in the ranking of the cheapest countries in the block, after Bulgaria, where prices were 40% lower than the European average.
The price level indices show how many units of the same currency are needed to purchase an identical volume of goods and services in different countries, for each group of goods and services. In 2024, for the consumer goods and services included in final consumption, 100 euro are paid at EU level, 143 euro (the highest value) in Denmark, 60 euro (the lowest value) in Bulgaria and 64 euro, second lowest in Romania.
In 2024, among the EU Member States, the highest price level for household final consumption was reported in Denmark (43% above the EU average), followed by Ireland (38% above the EU average), Luxembourg (33% above the EU average) and Finland (24% above the EU average).
While the low level of prices may suggest higher affordability, in reality it also reflects a lower purchasing power because of lower average incomes compared with those of Western Europe.
In line with INS data, Romania is the cheapest Member State for the “Food and non-alcoholic beverages” group (76%). Also, among the EU countries, Romania has the lowest price level for “Recreation and culture” (67%), followed by Bulgaria (68%).
Romania’s reported value of the volume index of GDP per capita, calculated on the basis of the PPP, is 78% relative to the European Union average, followed by Hungary and Croatia (77% relative to the EU average).
(English version by Catalina Apostoiu)