Cost of living changed across France, Italy, Spain and Portugal: prices, pay and housing
Prices rose across four countries
Eurostat’s harmonised index of consumer prices tracks the cost of everyday goods and services. Since 2000, the measure rose 59 percent in France, 68 percent in Italy, 78 percent in Spain and 71 percent in Portugal.
Prices increased by about 2 percent annually on average, but inflation accelerated in 2022. That year, inflation reached 8.7 percent in Italy, 8.3 percent in Spain, 8.1 percent in Portugal and 5.9 percent in France—the highest rates recorded in each country since at least 2000.
Wages and housing pressures
From 2021 to 2023, prices climbed by 12 to 15 percent across the four countries, while wages failed to keep pace. Although inflation later eased, prices did not return to earlier levels, leaving many households under pressure.
Spain had the largest increase in its house price-to-income ratio: it stood 56 percent above its 2000 level, despite a sharp decline after the 2008 financial crisis. Italy was the exception, with house prices broadly tracking incomes and the ratio just 5 percent higher than in 2000.
What the measures leave out
The price-to-income ratio does not identify which regions or households face the greatest strain. It also excludes mortgage and borrowing costs and does not measure the quality of homes.
Eurostat data show that education spending in France was 5.1 percent of gross domestic product, down from 5.6 percent in 2000. The available figure describes France and does not provide comparable education-spending data for the other three countries.
Key points
- Consumer prices rose between 59 and 78 percent in the four countries since 2000.
- Spain had the largest price rise and a house price-to-income ratio 56 percent above its 2000 level.
- Wages lagged behind price increases of 12 to 15 percent from 2021 to 2023.
- France’s public education spending was 5.1 percent of GDP, compared with 5.6 percent in 2000.