Cost of living in Italy
72.9 with the United States at 100
Prices in Italy are 27% cheaper than the United States, and it ranks 55th of 204 countries by price level (dearest first). Figures are for 2025.
Against New Zealand it is 18% cheaper.
Two agencies agree. For 2024, the World Bank's figure works out at 67.7 and Eurostat's at 70.3 — a gap of 2.6 points. Two independent programmes landing within 5 points is the strongest evidence available that the level is right.
Compared with its region
Italy against the Europe & Central Asia countries closest to it on price level.
- Italy 72.9
- Andorra 75.6
- Estonia 75.9
- Spain 68.7
- Czechia 67.0
- Slovenia 67.0
- Cyprus 66.9
- Greece 65.5
- Portugal 64.9
SOURCE·World Bank — International Comparison Program·PPP conversion factor for household final consumption, and the official market exchange rate. CC BY 4.0.·REVIEWED AUG 2026
What is dear and what is cheap
Eurostat prices 19 spending categories separately for Italy (2024), again with the United States at 100. This is where a national average stops being one number: a country can be cheap to eat in and expensive to drive in.
- Health 116.6
- Bread and cereals 108.5
- Clothing and footwear 106.9
- Restaurants and hotels 106.9
- Meat 105.2
- Milk, cheese and eggs 105.0
- Fruit and vegetables 103.3
- Food and non-alcoholic drinks 101.7
- Furnishings and household equipment 96.6
- Transport 95.7
- Fish 94.4
- Recreation and culture 93.9
- Housing, water, electricity and fuel 93.4
- Education 90.3
- Communication 85.7
- Tobacco 84.4
- Alcoholic drinks 83.9
- Non-alcoholic drinks 81.8
- Overall consumption (incl. government-funded services) 65.8
SOURCE·Eurostat — purchasing power parities (prc_ppp_ind)·Price level indices by consumption category, published on an EU27=100 basis and rebased here to US=100. CC BY 4.0.·REVIEWED AUG 2026
What this figure is, and is not
- It is an index, not a price. 72.9 means the general level of consumer prices, with the US at 100. It is not a shopping bill and this site never quotes one.
- It is national, not city. Rome is almost certainly dearer than this. National averages cannot answer a city question.
- It is not your budget. What you actually spend depends on rent, transport and habits far more than on the national average.
How the price level is worked out
- The World Bank publishes a purchasing power parity for household consumption — how much local currency buys the same basket as one US dollar — and the official market exchange rate for the same year.
- The price level is simply PPP ÷ exchange rate × 100. If a basket needs 1.50 New Zealand dollars per US dollar of purchasing power but the market hands you 1.65 New Zealand dollars for that dollar, New Zealand's prices sit at 1.50 ÷ 1.65 = 91% of the US level.
- Nothing is modelled, smoothed or estimated. You can reproduce every number on this site from two public figures.
- Where Eurostat also publishes a price level for the same country and year, the two are compared and the gap is printed — including when they disagree.
SOURCE·World Bank — International Comparison Program·PPP conversion factor for household final consumption, and the official market exchange rate. CC BY 4.0.·REVIEWED AUG 2026
SOURCE·World Bank ICP PPPs + Eurostat price level indices·price levels derived as PPP ÷ exchange rate, see method·REVIEWED AUG 2026