Barcelona has the cheapest Lidl basket in seven-city comparison

A 30-item Lidl grocery basket cost almost the same in Helsinki, Tallinn and Stockholm, while Barcelona was the cheapest of seven cities, according to a comparison by Yle.

Berlin, Warsaw and Athens were also cheaper than Helsinki. Yle compared prices at Lidl stores in Finland, Sweden, Estonia, Poland, Germany, Spain and Greece. It chose Lidl because it is the only grocery chain with stores in Finland and other European countries.

Food remains more expensive in Finland than the European average, but the gap has narrowed in recent years. Eurostat data show that last year food prices were higher than in Finland in Estonia and all the Nordic countries.

Inflation has been the biggest factor behind changing price differences across Europe. Food prices have risen in Finland, but inflation has been faster elsewhere. In 2022, food prices in Estonia rose by more than 19 percent, the fastest rate in the eurozone that year.

Taxes, wages, transport costs, competition and consumer habits also affect prices. Estonia’s food VAT is 24 percent, compared with 13.5 percent in Finland. Sweden’s government cut food VAT from 12 percent to 6 percent in the spring, with the lower rate set to last until the end of next year, but prices there remain higher than in Finland.

Competition is weaker in the Nordic countries than in Central Europe, where discount chains compete aggressively on price. In Germany, Aldi, Netto, Penny, Norma and Lidl compete for price-conscious shoppers. In Finland, competition is more visible through special offers. Sweden’s largest grocery chain, Ica, accounts for more than half of the grocery market.

Finland’s distance from production centres in Central and Southern Europe also makes transport more expensive and complex, Lidl purchasing manager Tommi Lehmussaari said. Consumer preference for Finnish meat also affects prices: Lidl sells a large amount of domestic meat in Finland, while shoppers in Estonia are more open to imported products, said Bate Ismail, an economist at the Finnish Food and Drink Industries’ Federation.

Yle compared regular prices for the same products in week 41. Where pack sizes differed, it used the price per kilogram; if the same brand was unavailable, it selected the closest match and aimed to include Lidl’s own-brand products. The country of origin varied for some items, including fruit and vegetables.