HERE ARE EUROSTAT DATA
The cost of living in Europe has come to the top of the agenda again. While the increase in energy bills, grocery shopping and housing expenses puts a strain on the budgets of millions of households, reactions to the rising costs of living are also reflected on the streets. While the European Commission is working on steps to limit energy costs and ease the housing crisis, the pressure on consumers’ daily spending continues. According to the data announced by Eurostat on October 16, annual inflation in the Euro Zone rose to 3.8 percent in September. The rate, which was 3.2 percent in August, was 2.2 percent in the same month last year. Annual inflation across the European Union was calculated as 3.8 percent. The annual increase in energy prices reached 18.9 percent.
ENERGY PRICES ARE THE MAIN FACTOR
Energy has become one of the most important sources of price increases in Europe. While the rise in electricity, natural gas and fuel costs directly affects household budgets, it also increases production and transportation costs. Businesses reflect the increasing costs on product and service prices, causing the cost of living to spread to other areas of the economy. According to Euronews’ news dated October 19, the effects of the war in the Middle East on energy supply and natural gas markets increased price pressure. The rise in energy costs particularly affects low-income families who spend most of their income on basic needs.
ONE IN THREE CONSUMERS ARE WORRIED
Food expenditures are also among the areas where the cost of living in Europe is felt the most. According to European Central Bank data cited by Dünya newspaper, 35 percent of EU consumers are worried about not being able to cover food costs. 74 percent of consumers state that they have noticed that the quantity or packaging of some products whose prices remain the same have been reduced. This practice causes the consumer to buy fewer products for the same money, even if the label price of the products does not change. Eurostat data shows that unprocessed food prices have also accelerated again. Unprocessed food prices in the Eurozone increased by 4 percent annually in September. The annual increase in the food, alcohol and tobacco group was recorded as 1.3 percent.
HOUSING PRICES INCREASED BY 16.5 PERCENT IN PORTUGAL
Housing costs continue to be a significant issue, especially for renters and first-time homeowners. Insufficient housing supply and construction costs increase the pressure on prices. Housing prices in Portugal increased by 16.5 percent in the second quarter of 2026 compared to the same period last year. According to Eurostat data, house prices across the EU increased by 5.1 percent annually in the first quarter of 2026, and rents increased by 3 percent. These increases increase the share of housing in the budget of households whose incomes do not increase at the same pace. While the European Commission puts the affordable housing plan on the agenda against the housing crisis, it is also working on new regulations to reduce housing costs.
