Household consumption price levels lower in CEE

Erste Bank Research Team Erste Bank

On the radar

Poland will release series of data at 9.30 AM (retail sales growth, producer prices, employment and wage growth) for May.
In Poland, industrial output growth in May was stronger than expected.
Slovenia will release wage growth in May as well (due 10.30 AM CET).

Economic developments

In 2025, price levels for household final consumption expenditure differed widely across EU countries, as well as within the region. The highest price levels for household consumption were recorded in Denmark (140% of the EU average), Ireland (136%) and Luxembourg (132%). Meanwhile, the lowest levels were observed in Bulgaria (63%), Romania (65%) and Poland (73%). Thus, two CEE countries had among the lowest price levels in the EU. Hungary and Croatia had price levels for household consumption only slightly higher than Poland’s, at 77% and 78%, respectively. Within the region, Slovenia and Czechia had the highest price levels for household consumption. These two countries are also the most developed in terms of GDP per capita. Price levels in the CEE region are generally lower than in the EU as a whole, mainly because CEE economies still have lower income levels, lower wages, different consumption structures and cheaper non-tradable services.

Market movements

CEE currencies weakened against the euro toward the end of last week due to global developments. Long-term yields declined. In Czechia, central banker Zamrazilova said that last week’s interest rate hike should not be seen as the beginning of a monetary tightening cycle. While Czech Prime Minister Babiš expressed his disagreement with the central bank’s decision, Governor Michl defended the central bank’s independence. In Romania, PM-designate Veștea submitted the government list and the 2026–2028 program to Parliament on 21 June, after the Social Democrats (PSD) unanimously decided to join the cabinet. At the moment, however, it remains unclear whether he can secure a clear majority.

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Erste Bank Research Team

Erste Bank

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