Europe's Food Price Shock Reveals Winners and Losers Amid Wage Hikes

Food prices have skyrocketed across Europe over the past five years, but minimum wages have risen even faster in most of the 26 countries examined by Euronews Business. However, there are some exceptions. In Malta, a worker on the minimum wage can buy about 6% less food with their gross pay than they could five years ago, despite a rise in wages.

Among EU countries, Hungary recorded the highest rise in food prices at 57%, followed by Bulgaria (54%) and Romania (53%). Cyprus had the lowest increase, at 21%. In Turkey, which was not part of the EU but was included in the comparison, food and non-alcoholic beverage prices rose by a staggering 752% over the same period.

The sharp rise in food prices can be attributed to several factors, including years of high inflation in Turkey, fueled in part by a decline in the value of the lira. Lower interest rates made the currency less attractive to hold, adding to pressure on its value. The war in Ukraine also contributed to rising costs for energy, fertilizers, and transportation, which fed through to supermarket prices.