Cost of Living
GoinGlobal’s career experts regularly update details about inflation, purchasing power, and costs of goods and services. Below is a brief excerpt from this section:
After years of almost no changes in Spain’s cost of living, the national economy’s recovery continues to affect general prices. The national Índice de Precios de Consumo (IPC or Index of Consumption Prices, calculated monthly by the National Institute of Statistics) keeps fluctuating upwards, and it has recently registered an annual growth of 2.3%, mainly due to the rise of oil prices, as well as that of food and electricity. While this has caused an increase in the inflation level, Spain’s purchasing power has decreased for most Spanish employees, as salaries have not improved during this economic recovery. Only the salaries of executives, directors and managers have increased slightly in the last two years, offering better standards of living for such professionals.
Despite the small rise in cost of living, Spain is still one of the least expensive countries in Western Europe. In fact, the country registers cheaper than average prices for most basic consumer products in the region, according to the most recent statistics by Eurostat.
Prices (including rent) in Madrid and Barcelona are approximately 35% lower than prices in New York City (the index’s base city), according to the UBS Bank’s latest Prices and Earnings survey. Considering national average prices, Spain’s cost of living (excluding rent) is approximately 20% cheaper than in the United States.
This is just a brief sample of the extensive information in the GoinGlobal Spain Career Guide.