Is United Kingdom expensive?

United Kingdom's overall price level is 92.4 against a United States baseline of 100 (2025 data), which makes it 8% cheaper than the United States. It ranks 28th of 204 countries by price level, dearest first.

How does United Kingdom compare with New Zealand?

United Kingdom is 4% dearer than New Zealand on national price levels.

Europe & Central Asia · London

Cost of living in United Kingdom

92.4 with the United States at 100

Prices in United Kingdom are 8% cheaper than the United States, and it ranks 28th of 204 countries by price level (dearest first). Figures are for 2025.

Against New Zealand it is 4% dearer.

Two agencies agree. For 2024, the World Bank's figure works out at 87.3 and Eurostat's at 89.9 — 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

United Kingdom against the Europe & Central Asia countries closest to it on price level.

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 1 spending categories separately for United Kingdom (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.

Overall consumption (incl. government-funded services) 86.5

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. 92.4 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. London 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.

Compare United Kingdom with another country

Every pairing below is a page of its own, with the category detail side by side. Nearest on price level first.

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.

Full methodology →