Issue 5: Iceland and Switzerland have the highest cost of living in Europe

31. 03, 2022

In a comparison of 36 European countries, Iceland was the second-most expensive in 2020, according to Eurostat figures on total household private consumption costs, based on the calculated price level difference between countries. Iceland and Switzerland have alternated in the top spot in recent years. The price level in Iceland was 40% higher than the EU average in 2020. Household expenditures are only higher in Switzerland, which occupies first place, earning it the title of Europe’s most expensive country in 2020, with price levels nearly 70% over the EU average. The most expensive country needs to have the highest wages, not least for the lowest paid.

Read more about it in issue no 5 of Efling’s Economic Analysis (Kjarafréttir) – full PDF version here.