Grocery Index Reveals Europe’s Most and Least Expensive Cities for Food

The cost of living, particularly essential expenditures like groceries, varies dramatically across global cities, significantly impacting household budgets and regional economic competitiveness. A recent analysis by the Deutsche Bank Research Institute, utilizing its ‘Grocery Index’ based on Numbeo data, sheds light on these stark disparities, forecasting grocery prices across major European cities for 2025. This comprehensive index provides a critical perspective on where consumers can expect to find the most, and least, expensive weekly shopping baskets across the continent.

• The ‘Grocery Index’ from Deutsche Bank Research forecasts 2025 European grocery prices, based on Numbeo data.
• New York City is established as the baseline for the index with a score of 100.
• Swiss cities Geneva (106) and Zurich (103) consistently register as Europe’s most expensive for groceries.
• Budapest and Warsaw share the distinction of being the cheapest European cities on the list, both with an index score of 37.
• The index highlights considerable grocery cost variations even within countries, such as London (62) compared to Birmingham (51).

The ‘Grocery Index’ methodology establishes New York City as a baseline with a score of 100, comparing weighted prices of common grocery items such as milk, bread, eggs, fruits, and meat. It is important to note that while this index offers a robust comparison of raw grocery costs, it does not account for local purchasing power, which is a crucial factor in assessing overall affordability for residents. The findings reveal compelling insights into the economic landscapes of European urban centers.

Europe’s Most Expensive Grocery Markets

Swiss cities consistently register as Europe’s most expensive for groceries. Geneva leads globally with an index score of 106, indicating grocery prices are 6% higher than in New York. Following closely, Zurich ranks as the second most expensive European city with a score of 103. These two Swiss hubs are notably the only European cities that exceed New York’s baseline grocery costs. For broader context, most U.S. cities included in the index, such as San Francisco (104), generally report higher grocery costs than their European counterparts, with the exception of Geneva and Zurich.

Beyond Switzerland, the next tier of high-cost European cities includes Oslo (78), Paris (71), and Luxembourg (66). While significantly more affordable than the Swiss duo or New York, these cities complete Europe’s top five for grocery expenses, reflecting elevated living costs.

Mid-Range and Budget-Friendly Options

A substantial cluster of European cities falls into the mid-range for grocery prices, with index scores typically between 58 and 63. This category encompasses a wide array of major capitals and economic centers, including Helsinki (63), Vienna (63), Copenhagen (63), Milan (62), London (62), Brussels (61), Edinburgh (61), Frankfurt (58), Dublin (58), Amsterdam (58), Munich (58), and Stockholm (58). These cities offer a more moderate cost environment for food staples compared to the priciest locations.

For the most economical grocery shopping, cities in Eastern and Southern Europe stand out. Budapest and Warsaw share the distinction of being the cheapest European cities on the list, both registering an index score of 37. This implies a grocery basket costing €100 in New York would be approximately 63% cheaper in these capitals. Other cities offering considerable savings include Istanbul (39), Prague (42), Lisbon (44), Athens (46), Madrid (46), Barcelona (49), Rome (51), Birmingham (51), and Berlin (55).

National Disparities and Leading Economies

The index also highlights notable price variations within the same country. For instance, grocery costs in London score 62, significantly higher than Birmingham’s 51, illustrating domestic economic disparities. On a global scale, Cairo records the lowest index score at just 20, indicating its grocery basket costs a mere fifth of New York’s.

A focused analysis of the capital cities within Europe’s top five economies reveals a clear hierarchy of grocery expenses:

City	Grocery Index Score
Paris	71
London	62
Berlin	55
Rome	51
Madrid	46

Among these economic powerhouses, Paris is the most expensive, while Madrid offers the most affordable groceries. A comparison shows Paris is approximately 54% more expensive than Madrid, 39% more than Rome, and 29% more than Berlin. The price difference between Paris and London is narrower, with Paris being about 15% more costly. These findings underscore the diverse economic realities shaping consumer spending across the European continent, influencing everything from individual household budgets to the attractiveness of cities for businesses and expatriates.