EU citizens are caught in the midst of a "storm" of rising living costs.

According to the Financial Times, inflation in the European Union (EU) has fallen significantly, but has not yet reached pre-Covid-19 levels. However, EU consumers are experiencing a prolonged cost of living crisis. Food prices and other essential goods remain more than 30% higher than in 2021, forcing companies to find ways to increase revenue.

Greeks carefully check prices when shopping. Photo: EFSA

Companies across Europe are increasingly trying to attract shoppers by lowering prices on food and other consumer products. However, these discounts are not boosting sales as expected.

According to economists , consumers have significantly cut back on spending after months of rising prices. In their most recent earnings reports, large corporations have reported signs of real strain among lower-income consumers. Manufacturers of branded products have lost market share to smaller, more affordable brands amid the cost of living crisis.

Rising living costs are now the most pressing concern for over 90% of EU citizens, reflected in increased household spending on items such as housing (rent), clothing, electricity, healthcare , and transport. Housing, water, electricity, gas, and other fuels accounted for the largest share of EU household consumption in 2022, at 24.1%.

This increase underscores the financial burden of essential living costs on households. Countries more dependent on Russian gas have seen the biggest energy price increases in recent years.

In some countries, the increase was more pronounced, exceeding 5%. Between 2002 and 2022, Ireland saw the most significant increase at 7.1%, followed by Spain and Italy at 6.3% and 5.4% respectively. Housing costs hit low-income households hardest. For the European public, the impact of inflation remains very real.

Maria, 63, a cleaning lady in Athens, Greece, said: “I used to buy feta cheese for 7-8 EUR/kg, now it’s 14 EUR.” The sharp price increase has forced Maria to hunt for special deals in many places. Similarly, many Greeks have changed their shopping habits due to high inflation and switched to a new routine: traveling around the city to find bargains.

In France, Frédéric, an accountant living near Paris, was also affected by high prices. According to him, "my gas and electricity bills have increased by 35%." Frédéric began tracking his spending more closely and found that spending on food and utilities had increased the most.

The overall increase in spending on housing and utilities over the past two decades shows that these costs have become a significant part of household budgets, reflecting broader economic pressures and a shift in the cost of living across the EU.

A recent report on affordable housing by the Organization for Economic Cooperation and Development (OECD) highlights that housing costs can become a significant financial burden for households, particularly those with low incomes. The high proportion of housing cost burdens is especially alarming among leading European economies.

KHANH MINH

Source: https://www.sggp.org.vn/nguoi-dan-eu-giua-con-bao-chi-phi-sinh-hoat-post755301.html