Why has inflation hit the US more than Europe?

[Anonymous]

We visited Italy, France and Monaco this summer and I was surprised that the prices overall were significantly less than the US.

Hotel rooms are definitely cheaper, the cost of food is significantly cheaper : a good croissant in Paris is 1.20 euros vs $5-$6 here at a comparable bakery. A scoop of icecream in Venice and Monaco is 3 euros vs $6-$7 here.
Restaurant food is almost half the price in Europe when you account for taxes and tips in the US ( not to mention you get better tasting food there).

I get the Covid stimulus packages passed in the US contribute to inflation but many European countries also passed those.

Why has inflation hit the US much harder?

[Anonymous]

Anonymous wrote:We visited Italy, France and Monaco this summer and I was surprised that the prices overall were significantly less than the US.

Hotel rooms are definitely cheaper, the cost of food is significantly cheaper : a good croissant in Paris is 1.20 euros vs $5-$6 here at a comparable bakery. A scoop of icecream in Venice and Monaco is 3 euros vs $6-$7 here.
Restaurant food is almost half the price in Europe when you account for taxes and tips in the US ( not to mention you get better tasting food there).

I get the Covid stimulus packages passed in the US contribute to inflation but many European countries also passed those.

Why has inflation hit the US much harder?

Inflation hit Europe harder! The dollar is really strong now so the exchange rates make it cheaper for Americans.

[Anonymous]

I just back from a month in Europe. We apparently stayed in very different places. Restaurants were probably 30% more for comparable basic meals than in the US. Moderately nice dining was sometimes roughly equal and sometimes twice as expensive. Accommodations were roughly the same cost as in the US. Rental cars were about twice as expensive.

In my experience, bakery and take-away food has always been less expensive over there than in the US. I suspect because it's so much more common, but I'm not an economist.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We visited Italy, France and Monaco this summer and I was surprised that the prices overall were significantly less than the US.

Hotel rooms are definitely cheaper, the cost of food is significantly cheaper : a good croissant in Paris is 1.20 euros vs $5-$6 here at a comparable bakery. A scoop of icecream in Venice and Monaco is 3 euros vs $6-$7 here.
Restaurant food is almost half the price in Europe when you account for taxes and tips in the US ( not to mention you get better tasting food there).

I get the Covid stimulus packages passed in the US contribute to inflation but many European countries also passed those.

Why has inflation hit the US much harder?

Inflation hit Europe harder! The dollar is really strong now so the exchange rates make it cheaper for Americans.

Thank you. This is a huge factor.

[Anonymous]

Anonymous wrote:I just back from a month in Europe. We apparently stayed in very different places. Restaurants were probably 30% more for comparable basic meals than in the US. Moderately nice dining was sometimes roughly equal and sometimes twice as expensive. Accommodations were roughly the same cost as in the US. Rental cars were about twice as expensive.

In my experience, bakery and take-away food has always been less expensive over there than in the US. I suspect because it's so much more common, but I'm not an economist.

It depends where. In Paris restaurants are overpriced. You can eat a fantastic multi-course meal in a small town for $30/person. We rented a car through Costco and it was very cheap, for a great car.

[Anonymous]

You need to understand the difference between price gouging and inflation.

[Anonymous]

We went to Italy last year. Despite hearing that things were expensive, we found it to be reasonable. We’re from DMV a HCOL area. Maybe you’re confusing COL vs inflation?

[Anonymous]

Anonymous wrote:We visited Italy, France and Monaco this summer and I was surprised that the prices overall were significantly less than the US.

Hotel rooms are definitely cheaper, the cost of food is significantly cheaper : a good croissant in Paris is 1.20 euros vs $5-$6 here at a comparable bakery. A scoop of icecream in Venice and Monaco is 3 euros vs $6-$7 here.
Restaurant food is almost half the price in Europe when you account for taxes and tips in the US ( not to mention you get better tasting food there).

I get the Covid stimulus packages passed in the US contribute to inflation but many European countries also passed those.

Why has inflation hit the US much harder?

1. If you’re paying 5-6 dollars for a croissant or $6-7 dollars for a scoop of ice cream in the US you’re drastically overpaying. Normal Americans are paying half of that (and probably getting better quality products.)

2. The Euro used to be worth 1.3-1.4 dollars and post Covid has been 1.06-1.10 so you’re getting a great deal when exchanging dollars to buy things in Euros.


3. Proportionally there are a lot more wealthy Americans who are willing to overpay for products and drive prices up

[Anonymous]

Croissants and gelato are luxury foods in the US and more normal in Europe.

[Anonymous]

Inflation was a lot worse in Europe in the last few years, but the baseline was different. The things you mention were already a lot cheaper in Europe before inflation. Grocery prices have risen tremendously in Europe, by larger percentages than here. But the baseline was already a lot cheaper than US, so it is still cheaper. And comparing bakery prices...there is so much competition in France for fresh baked goods, with a boulangerie on every block in addition to grocery stores. There are price wars on bread among the major chains, because it gets people in the door to make other purchases. Americans don't care about bread or croissants. They are frivolous purchases, not staples.

[Anonymous]

Anonymous wrote:You need to understand the difference between price gouging and inflation.

Yes. Record profits with the record high prices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We visited Italy, France and Monaco this summer and I was surprised that the prices overall were significantly less than the US.

Hotel rooms are definitely cheaper, the cost of food is significantly cheaper : a good croissant in Paris is 1.20 euros vs $5-$6 here at a comparable bakery. A scoop of icecream in Venice and Monaco is 3 euros vs $6-$7 here.
Restaurant food is almost half the price in Europe when you account for taxes and tips in the US ( not to mention you get better tasting food there).

I get the Covid stimulus packages passed in the US contribute to inflation but many European countries also passed those.

Why has inflation hit the US much harder?

1. If you’re paying 5-6 dollars for a croissant or $6-7 dollars for a scoop of ice cream in the US you’re drastically overpaying. Normal Americans are paying half of that (and probably getting better quality products.)

2. The Euro used to be worth 1.3-1.4 dollars and post Covid has been 1.06-1.10 so you’re getting a great deal when exchanging dollars to buy things in Euros.


3. Proportionally there are a lot more wealthy Americans who are willing to overpay for products and drive prices up

Restaurants in the US are so overpriced now, a crappy Dunkin meal was $30 for my wife and I (only went because of a gift card). 2 reheated egg croissant sandwiches, 2 small hash browns, 2 coffee drinks. Thirty dollars and it didn’t even taste that good or left me feeling full.

You pay so much here for s*** quality food. Also we don’t eat ice cream much, but a few months ago I got a cone at cold stone creamery and it was like 10 bucks.

Five guys is laughable. 2 burgers and a shared fry with one soda is $35.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We visited Italy, France and Monaco this summer and I was surprised that the prices overall were significantly less than the US.

Hotel rooms are definitely cheaper, the cost of food is significantly cheaper : a good croissant in Paris is 1.20 euros vs $5-$6 here at a comparable bakery. A scoop of icecream in Venice and Monaco is 3 euros vs $6-$7 here.
Restaurant food is almost half the price in Europe when you account for taxes and tips in the US ( not to mention you get better tasting food there).

I get the Covid stimulus packages passed in the US contribute to inflation but many European countries also passed those.

Why has inflation hit the US much harder?

1. If you’re paying 5-6 dollars for a croissant or $6-7 dollars for a scoop of ice cream in the US you’re drastically overpaying. Normal Americans are paying half of that (and probably getting better quality products.)

2. The Euro used to be worth 1.3-1.4 dollars and post Covid has been 1.06-1.10 so you’re getting a great deal when exchanging dollars to buy things in Euros.


3. Proportionally there are a lot more wealthy Americans who are willing to overpay for products and drive prices up

So if you live in a high COL area, you are not a "normal American?" Super. Please exits the conversation and find the MAGA chat you obviously are looking for.

[Anonymous]

are you accounting for the exchange rate op?

[Anonymous]

Food in EU was always more expensive if you bade it to salaries. US was much cheaper due to cheaper labor and fewer regulations. Now its catching up to be the same % of takehome. But the quality is worse (less regulation so more salt and sugar in US food) and the increased costs end up as profits for companies and not as tax base for services.