A new study suggests that Hungarians are right to feel that shopping abroad can be cheaper – but much depends on what they are buying. Food prices paint a very different picture from, say, the cost of services. Meanwhile, a fresh survey has shown that Romania and Bulgaria still outperform Hungary on an important measure of consumption. A new analysis now attempts to set the record straight.
Is shopping abroad cheaper? Yes – but it depends what you buy
Many Hungarians will be familiar with the experience of travelling abroad and finding that certain products cost the same as, or even less than, they do at home. At the same time, wages remain well below western European levels. A recent analysis by GKI Economic Research examined how much Hungary has actually moved closer to the European Union over the past 15 years, both in terms of wages and prices.
The figures show progress on both fronts, but Hungary did not start from the same base in each case. In 2010, Hungary’s price level stood at 59 per cent of the EU average, while wages reached just 32 per cent of the bloc-wide average. By 2025, the price level had risen to 72 per cent of the EU average, while wages had reached 49 per cent.
In other words, Hungarian wages have moved closer to the EU average faster than prices have. In theory, that should mean an improvement in purchasing power. According to GKI, however, there is an important downside: many of Hungary’s regional competitors – including Romania, Poland and Slovakia – have developed considerably faster.
Food is already almost at EU prices
Hungarian consumers may be particularly interested in the significant differences that have emerged between individual product groups. In 2025, food prices had already reached 95 per cent of the EU average. This means that Hungarians are buying fruit, vegetables and dairy products at prices that are almost at the EU level. Alcohol and tobacco products were cheaper, at 87 per cent of the EU average, while furniture and household appliances stood at 89 per cent.
Housing and household utilities might initially appear to be an exception, with prices standing at 67 per cent of the EU average. GKI said, however, that this figure is significantly distorted by the impact of Hungary’s household utility price cuts and other forms of state support. The costs associated with housing have risen substantially in recent years.
Meanwhile, the cost of services has also edged closer to EU levels. Between 2010 and 2025, prices in tourism moved 33 percentage points closer to the EU average, education by 31 percentage points, and leisure and culture by 14 percentage points.
Wages remain well below the EU average
The most important gap, however, remains visible in wages. Although Hungarian earnings have improved significantly relative to the EU average since 2010, they still stood at only 49 per cent of it in 2025.
GKI also stressed that it matters how Hungary has performed compared with its own starting point. Several neighbouring countries have caught up at a much faster pace, meaning that Hungary has failed to improve its relative position despite making progress of its own.
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Hungary ranks last on this measure of consumption
This is reflected in figures for actual individual consumption per head, on which Hungary ranks last in the EU. In other words, although Hungarians earn more in nominal terms today, and wages have moved closer to the EU average, the spending power of the average Hungarian household remains the weakest in the bloc – even below that of average households in Romania and Bulgaria.
GKI therefore rejects the idea that Hungary has made no progress in catching up with Europe. Wages have indeed risen faster relative to the EU average than prices have. The problem is that Hungary’s rate of convergence has lagged behind that of its regional competitors, while the prices of certain goods and services are already close to EU levels.
Hungarians travelling abroad may therefore reasonably encounter prices – particularly for food – that no longer appear higher than those at home. When it comes to wages, however, the gap remains substantial.
