Poland's consumer prices reach 73.3% of the EU average, closing the gap from 58% a decade ago

In 2025, the price level of household consumption in Poland reached 73.3 percent of the European Union average, according to a report released by the Polish Economic Institute (PIE) on 27 June 2026. That marks a climb of more than 15 percentage points from the 58 percent registered in 2015, underscoring a decade of rapid convergence toward Western European price levels.

The convergence was especially sharp in the 2020-2025 period.

A particularly dynamic increase in the relative price level occurred in 2020-2025, when Poland, alongside Estonia, was among the Central and Eastern European countries most quickly closing the price gap with Western Europe.

What pushed prices up

The acceleration was propelled mainly by a stronger impact of the energy shock than in Western Europe. Poland's economy is highly energy-intensive, and energy and food account for a large share of the consumption basket. Rapid wage growth also pushed up labour costs and fed through to higher prices, especially in services.

While gas and electricity prices nearly doubled, and hairdressing, dental and renovation services became more expensive by close to 70 percent, the prices of many industrial goods remained relatively stable.

Services still cheaper, industrial goods nearly level

Consumer services in Poland remain markedly cheaper than in Western Europe. Last year service prices stood at around 60 percent of the EU average. However, prices of clothing, cars and household appliances had reached levels almost equal to those in the rest of the Union, PIE noted.

Among the cheapest in the EU

Despite the recent episode of elevated inflation, Poland stayed among the cheapest EU member states. Only Romania and Bulgaria recorded lower price levels, at 65.1 percent and 62.5 percent of the EU average respectively. At the opposite end, Denmark, Ireland and Luxembourg have been the most expensive countries since 2018, with price levels exceeding 130 percent of the EU average.

It is worth noting that lower prices in Poland, compared with other Central and Eastern European economies, result among others from the deep-market effect, which fosters competition and limits profit margins in retail trade.

Long-term convergence through integration

The Polish Economic Institute assessed that over the long run Poland's catch-up with Western European price levels stems from participation in the single market and the gradual equalisation of prices. Structural factors such as the absence of trade barriers, the free movement of goods, persons, services and capital, and the progressive harmonisation of regulations support the erosion of price differences with wealthier economies.