Why do prices vary so much? Main factors influencing food costs
These differences stem from many factors. Firstly, the income level and purchasing power of residents in a given country or city are crucial—the higher the earnings, the more often we observe higher prices, which reflect the general cost of living.
Another significant factor is the cost of labor, transport, and energy. In countries like Switzerland or Norway, where wages are high and regulatory systems are more stringent, food prices also rise. Tax policy, including the VAT rate on food products, and the presence or absence of subsidies for local agriculture also play an important role.
Logistical conditions and market structure are also key—in countries where competition among retail chains is strong, prices tend to be lower, as do prices in countries more self-sufficient in food production. Conversely, countries that import most food products are more exposed to price fluctuations in international markets.
Food prices in European cities are very diverse. The most expensive groceries are in Geneva and Zurich, but also in Oslo, Paris, and Luxembourg. Cities like London, Vienna, and Copenhagen offer average prices, while the most economical shopping can be done in Budapest, Warsaw, and Prague. It’s worth considering these differences when planning a trip, a relocation, or comparing the cost of living in different parts of Europe.
