European Grocery Prices Stay 33% Above Pre-Pandemic Levels as Wage and Farm Costs Keep Rising
Updated
Updated · Euronews · May 31
European Grocery Prices Stay 33% Above Pre-Pandemic Levels as Wage and Farm Costs Keep Rising
3 articles · Updated · Euronews · May 31
EU food and non-alcoholic beverage prices were 33.2% higher in 2025 than in 2016, showing why supermarket bills still feel elevated even as food inflation slowed to about 2.8%.
Lower inflation has not reversed the earlier shock; it only means prices are rising more slowly, while one in three eurozone consumers now worries about affording the food they want.
Wage pressure remains a key structural driver: agricultural pay rose 6.2% in 2022 and above 5% through 2023, while average European labour costs still climbed 5.1% in 2025.
Upstream costs are building again, with Q1 2025 milk prices up 12.6%, eggs 10.7% and cereals 9.6%; the World Bank also flagged a near 46% jump in Urea prices tied to Middle East energy disruption.
Eastern Europe faces the harshest squeeze: Hungary's food price index has more than doubled since 2015, and Romanian households spend roughly 25% of income on food versus 11.5% in Germany.
With the Mideast conflict choking supplies, are permanently high food prices the new normal for Europe?
As leaders blame global crises for food costs, are they ignoring deep vulnerabilities within Europe's own supply chain?
Europe's Grocery Price Surge Persists in 2026: Drivers, Disparities, and What Comes Next
Overview
As of May 2026, Europe is still facing high grocery prices, even though the sharp food inflation seen in 2022 and 2023 has eased. The initial surge began with a dramatic rise in energy costs, which caused a ripple effect through the entire supply chain—impacting everything from agricultural production to retail. This led to record-high food price increases in countries like Germany. Although inflation has slowed and some costs have dropped, grocery prices remain well above pre-surge levels. Ongoing pressures, such as rising wages and structural vulnerabilities, mean a quick return to old price levels is unlikely.