Romania boasts some of the lowest prices for goods and services in the EU

Romania stands out in the European Union with a Price Level Index (PLI) of 65, indicating that the same basket of goods and services costs about 65% of the EU average. This makes Romania approximately 35% cheaper than the EU average, showcasing its affordability compared to other member states.

The analysis, published by Erste Bank, highlighted significant differences in price levels for household consumption across Central and Eastern Europe. While Denmark shows the highest prices at 140% of the EU average, Ireland and Luxembourg follow closely at 136% and 132%, respectively. In contrast, Romania enjoys some of the lowest prices, alongside Bulgaria at 63% and Poland at 73%.

Economists utilize the PLI to gauge how expensive a country is for its residents, taking into account all indirect taxes that consumers face, such as VAT. This indicator reflects not only the cost of living but also the overall economic landscape in the region.

A report from the National Institute of Statistics (INS) underlines Romania's position as the most affordable EU country for food and non-alcoholic beverages. Slovakia and Poland follow as the next cheapest options in this category, offering insight into the comparative cost of living in the region.

Overall, the prices in Central and Eastern Europe are generally lower than the EU average, although these economies still contend with lower income levels and differing consumption structures. Despite this, Romania's competitive pricing remains a positive aspect for both residents and visitors alike.