Greek Households Struggle as Cost of Living Remains High

Inflation continues to hit Greek households hard, undermining purchasing power and living standards. According to recent research by IME GSEVEE, more than six in ten families report struggling to make ends meet each month. For low-income households earning up to 12,000 euros annually, money runs out within the first two weeks. Nearly 72% of citizens are forced to cut back on other expenses just to cover basic needs, viewing rising prices as the greatest threat to financial stability.

Widespread Consumer Pessimism

The cost-of-living crisis is no longer limited to low-income households. Middle-income earners, with monthly incomes between 1,200 and 2,000 euros, are also feeling the pressure, with 51.4% reporting difficulty in meeting monthly expenses. Greeks emerge as the most pessimistic consumers in the European Union, far ahead of their counterparts in Estonia and Hungary.

Greece’s Place in Global Rankings

The 2025 Numbeo Cost of Living Index, which compares prices for goods, services, and rents relative to New York City, places Greece in the top 50 of 143 countries, with an index of 34.4. By comparison, Switzerland (82.3) and Singapore (80.9) rank among the highest, reflecting high wages and expensive real estate markets. Within Europe, Iceland, Ireland, and Norway also feature prominently among the most expensive countries.

While global inflation may be easing, Greece continues to face a stark gap between wages and actual living costs. Households are trimming everyday expenses, awaiting tangible benefits from broader economic growth. Deutsche Bank research highlights Athens as the third most expensive city globally for basic utilities, which consume nearly 19% of the average wage. Renting a one-bedroom apartment can take up 57% of a typical salary, underscoring the strain on urban households.

A Global Perspective

At the other extreme, countries such as Pakistan (11.3), Libya (11.3), and Afghanistan (11.6) have the lowest living costs, while much of South Asia, including India (12.8) and Bangladesh (13.0), maintains prices at roughly one-eighth of New York levels. These nations benefit from low wages and young populations, keeping everyday costs comparatively low.

For Greek families, however, affordability remains a pressing challenge, even as macroeconomic indicators suggest recovery. The gap between official growth figures and household realities continues to define daily life.

Source: tovima.com