Over the past five years, food costs have risen significantly across Europe, but in most of the 26 nations Euronews Business examined, minimum wages have risen even faster. One exception is Malta. Even though earnings have increased, a worker on the minimum wage there may purchase roughly 6% less food with their gross salary than they could five years ago. Additionally, minimum-wage workers in France and Spain have lost ground.
According to Eurostat, prices for food and non-alcoholic beverages increased by 34% in the EU between August 2021 and August 2026. At 57%, Hungary had the largest increase in the bloc, followed by Romania (53%) and Bulgaria (54%). At 21%, Cyprus experienced the least rise.
Switzerland saw the least amount of growth 5% among the larger group of 35 European nations. Turkey’s remarkable increase is a result of years of high inflation, partly caused by the lira’s precipitous decline, which increased the price of imported products and inputs. Despite rising inflation, a series of interest rate cuts that started in 2021 contributed to the lira’s slide. Lower rates increased pressure on the currency’s value by making it less appealing to retain. In 2023, Turkey shifted course and dramatically raised rates, but prices kept rising.
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