How Europe’s cities stack up in the cost-of-living index

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BUMPER SNOWFALL means Europe’s ski resorts have enjoyed the best start to a season in years. Thousands of salopette-clad slalomers are making the most of it, dragging themselves up mountains and hurtling down the slopes. But much of the continent is steep in a less enjoyable sense, too. Cities in western Europe are among the biggest climbers in this year’s global cost-of-living index by EIU, our sister company. That reverses a downward slide in 2022. Our map below shows how 44 cities in the region compare.

Switzerland, which sits at one of the highest altitudes in the region, also has some of the highest prices. Zurich came in first place with Singapore, having jumped five places from last year. Geneva followed, coming joint third with New York. Overall, the region accounts for ten of the 20 priciest cities in the world; the scores for each city rose by an average of six percentage points.

What accounts for western Europe’s greater unaffordability? It is in part a consequence of sticky inflation, which continues to push up the prices of groceries, clothing and personal care. But the bigger reason for these jumps is the appreciation of the euro and other European currencies against the greenback. EIU’s index converts prices to dollars in order to compare them (it is primarily used to adjust expatriates’ salaries). A strengthening currency, therefore, often means a rise up the rankings. When using last year’s exchange rates, the cities instead rose by an average of two percentage points.

Cities that use currencies that depreciated went in the opposite direction. Oslo, for example, slipped from 12th place last year to 30th in 2023. The Norwegian krone has weakened significantly against the dollar; Norway’s central bank has been much less aggressive in raising interest rates than the European Central Bank or America’s Federal Reserve.

The cheapest cities in the region are, unsurprisingly, farther east. Tashkent (which, despite being in Uzbekistan, is included as part of Europe by EIU) has the lowest prices. St Petersburg, in Russia, was also among the least expensive cities in the region, given the fall in the value of the rouble. The survey also included Kyiv this year (it was omitted in 2022; the war made it impossible to collect the data). Ukraine’s capital is now ranked 38th in Europe.

For a cheaper option in the west consider Lisbon, Portugal’s picturesque capital. Its seven hills may not be known for après-ski, but as the 12th cheapest city in the region its residents get more bang for their euro. They may even be able to afford a trip to the Alps.■

Read more on the world’s most expensive cities:
These are the world’s most expensive cities
Asia’s most expensive cities, ranked
These are the most expensive cities in North America