Nordic countries are still among Europe’s most expensive

Nordic countries remain among Europe’s most expensive places for households, according to new Eurostat-based data for 2025, with Iceland now ranking as the most expensive country in the comparison and Denmark, Norway, Sweden and Finland all above the EU average.

The figures, published by Eurostat and national statistical offices, compare household final consumption prices across 36 European countries by setting the EU average at 100. A value above 100 means prices are higher than the EU average, while a value below 100 means they are lower. The preliminary 2025 data show that high price levels remain a defining feature of the Nordic region, although the distance between some countries is narrowing.

Europe’s ten most expensive countries in 2025

Iceland overtakes Switzerland as Europe’s most expensive country

Iceland recorded the highest overall household price level in Europe in 2025, at 73.5 percent above the EU average. It overtook Switzerland, which stood at 71.3 percent above the EU average.

The change reflects both domestic price developments and exchange-rate movements. According to Statistics Norway (Statistisk sentralbyrå, SSB), Iceland’s increase was linked to higher domestic inflation than in the EU and a stronger Icelandic króna. Switzerland, by contrast, saw a small relative decline, partly because inflation there remained very low in 2025.

Iceland also stands out across several consumer categories. Food and non-alcoholic beverages were indexed at 155.8, while restaurants and accommodation services reached 173.2. Alcoholic beverages, tobacco and narcotics were even higher, at 230.6. This makes Iceland not only the most expensive Nordic country overall, but also one of the clearest examples of how taxes, wages, import dependence and currency movements can combine to shape consumer prices.

Denmark is the EU’s most expensive country

Among EU member states, Denmark had the highest price level for consumer goods and services in 2025, at 39.7 percent above the EU average. It ranked third in the wider European comparison, behind Iceland and Switzerland.

Denmark’s position is especially relevant because it is the most expensive country inside the EU, rather than in the broader EFTA group. Eurostat notes that Denmark also stands out within the EU for several categories, including transport services, restaurants and hotels, household appliances, clothing and footwear.

The Danish data show a mixed picture across spending areas. Food and non-alcoholic beverages were 20.5 percent above the EU average, while housing, water, electricity, gas and other fuels were 66.9 percent above it. Restaurants and accommodation services were 42 percent above the EU average, making Denmark particularly expensive for visitors as well as residents.

Norway remains sixth, but Sweden is getting closer

Norway remained the sixth most expensive country in Europe for the third year in a row, with household prices 28.6 percent above the EU average. This was slightly higher than in 2024, when Norway was 27.2 percent above the EU average.

SSB attributed the rise to two main factors: Norway had somewhat higher inflation than EU countries, and the Norwegian krone strengthened in 2025. The result is that Norway remains expensive by European standards, though it no longer stands as far apart from Sweden as it did a year earlier.

The Swedish comparison is one of the most notable shifts in the Nordic data. In 2024, Sweden’s overall price level was about 8.5 percent lower than Norway’s. In 2025, the gap narrowed to just under 6 percent. Sweden’s price level rose from slightly above 16 percent over the EU average in 2024 to 21 percent in 2025, partly because of a stronger Swedish krona.

This matters for cross-border shopping. SSB notes that Norwegians can still save around 17.5 percent by filling a shopping basket in Sweden compared with Norway, while shopping in Denmark remains about 10 percent cheaper than in Norway for food and non-alcoholic beverages.

Sweden and Finland are cheaper than their Nordic neighbours, but still above the EU average

Sweden and Finland remain the least expensive of the five Nordic countries included in the comparison, but both are still well above the EU average. Sweden ranked seventh in Europe, at 121.0, while Finland ranked eighth, at 120.8.

Statistics Finland said Finland’s total price level was the eighth highest in Europe and 21 percent above the EU average. It also noted that the Nordic countries as a group remain expensive by European comparison.

The category breakdown shows important differences between Sweden and Finland. Finnish food and non-alcoholic beverages were 7.5 percent above the EU average, compared with 9.9 percent in Sweden. But Finland was much more expensive for alcoholic beverages, tobacco and narcotics, with an index of 174.1, compared with 123.4 in Sweden. This reflects the continued importance of taxation and public policy in shaping consumer prices across the region.

Sweden, by contrast, had higher clothing and footwear prices than Finland, while both countries had broadly similar overall household price levels. Their proximity in the 2025 ranking suggests that the Nordic price gap is no longer only a Norway-versus-Sweden story, but part of a wider regional pattern shaped by currencies, wages, taxation and service costs.

What is most expensive in the Nordic region

The Eurostat comparison shows that Nordic prices are not equally high in every category. Some areas are consistently expensive across the region, while others vary sharply from country to country.

Restaurants and accommodation services are among the most relevant categories for travellers. Iceland was the most expensive Nordic country in this group, at 173.2, followed by Denmark at 142.0 and Norway at 139.7. Sweden stood at 123.4 and Finland at 121.7. This means that eating out and staying in hotels remain substantially more expensive in the Nordic region than in most of Europe.

Food prices also remain high, especially in Iceland and Norway. Iceland’s food and non-alcoholic beverages were 55.8 percent above the EU average, while Norway’s were 33.1 percent above it. Denmark, Sweden and Finland were closer to the EU average, but still above it.

Alcohol and tobacco show the largest differences, largely because of taxation. Iceland and Norway were more than twice the EU average in this category, while Finland also remained very high. Denmark and Sweden were closer to the European average, but still above it.

Housing-related costs vary more sharply. Iceland and Denmark were particularly expensive, while Norway’s housing, water, electricity, gas and other fuels index was much lower than its overall price level. SSB notes that electricity is one of the few areas where Norway remains cheaper than the European average, partly because of energy policy and support schemes.

High prices remain part of the Nordic economic model

The 2025 data confirm a familiar pattern: Nordic countries are expensive, but not in the same way or for the same reasons. Iceland’s rise to the top of the European ranking is linked to inflation and currency strength. Denmark’s position reflects its role as the most expensive EU country. Norway remains high, but Sweden is closing the gap. Finland sits close to Sweden and confirms that even the least expensive Nordic countries remain costly by European standards.

The comparison does not measure purchasing power, wages or welfare provision directly. High prices can coexist with high incomes, extensive public services and strong social protection. But for households, tourists and cross-border consumers, the price-level data show how visible the cost of living remains across the region.

For the Nordic countries, the political question is not only whether prices are high, but how they interact with wages, taxation, public services and household resilience. In a period of inflation, currency volatility and pressure on living standards, the region’s high-price model remains both an economic fact and a social policy challenge.