Since the pandemic, we’ve weathered energy shocks, rent hikes, food price surges, and the kind of grocery checkout moments that make you do a double take. And just when it seemed things couldn’t get tighter, interest rates and utility bills decided to join the party. But the latest Ipsos Cost of Living Monitor (2025) hints at something we haven’t felt in a while: relief.
Not joy. Not comfort. But a little less tension in the shoulders.
Around the world, more people are saying they’re “doing alright” financially (37% globally, up from 33% last year). That’s a small win - but one that still comes with an undercurrent of worry. Because even as we start to catch our breath, most of us are quietly asking: for how long?
Around 40% of Europeans now feel financially stable
Let’s start with the good news: more people say they’re managing okay. The Ipsos report spans 30 countries, and the headline is surprisingly positive: 37% of people now say they’re living comfortably or at least doing fine, up from 33% last year.
Across Europe, the trend is cautiously encouraging. In Great Britain, just over half (51%) of people describe themselves as “comfortable” or “doing alright” - the highest level since Ipsos began tracking in 2022. Sweden tells a similar story, with 57% now saying they’re doing fine financially.
Elsewhere, smaller but steady improvements are visible. In Germany, 43% say they’re “comfortable” or “managing,” up slightly from last year. France sits at 38%, showing modest progress after two years of stagnation. In the Netherlands, nearly half (48%) report feeling financially stable, while in Spain, the figure stands at 41%, small but meaningful steps forward.
Some countries, however, are still finding it harder to recover. In Italy and Poland, fewer than four in ten people say they’re doing alright, and in Hungary, just 32% describe their situation as comfortable - one of the lowest levels in Europe.
Looking ahead, optimism is fragile. In France, almost half (44%) expect their disposable income to fall in the next 12 months, while in Sweden, that share has jumped from 18% to 29%. In Britain, despite the improvement in current comfort levels, 34% still expect things to get worse financially this year.
We’re not struggling the way we were, but we’re not relaxed either. It’s progress wrapped in uncertainty.
Inflation: the lingering worry
If 2022 was the year everyone became an expert on inflation, 2025 is the year we’re still talking about it.
Across Europe, expectations of rising prices are back after a short break in 2023. On average, 66% of Europeans think inflation will rise again in the next year - up five percentage points from the end of 2024.
And honestly, it’s hard to blame anyone for feeling skeptical. Sure, inflation might be “under control” on paper, but most of us don’t feel that at the checkout counter. Groceries, gas, and housing costs remain well above pre-pandemic levels, putting strain on European households. Food prices in the euro area have risen roughly 30–34%, while housing costs - including rents and home prices - are 28–60% higher than a decade ago, and “getting by” has become a daily balancing act.
It’s what some call “inflation fatigue”: we’re not panicking anymore, but we’re not celebrating either.
Still feels like a recession, doesn’t It?
Here’s something Ipsos has tracked for a while: even when economies show signs of growth, many people still feel like they’re in a recession.
That’s true across Europe too. On average, 46% of Europeans believe their country is currently in recession, compared to 29% who think it isn’t. In France and Italy, that perception is even higher, around half of all respondents.
When everyday life still feels tight, talking about “economic recovery” can sound distant.
The “Uneasy Decade” Continues
If you’ve followed Ipsos’ research since 2022, you’ll recognize this theme: uncertainty has become a defining part of life.
The 2025 results show that Europeans, like people elsewhere, are adapting. Many have adjusted their spending habits, buying less often or switching to cheaper options, but confidence hasn’t fully returned.
So yes, we’re coping better. But there’s still an underlying sense that the ground could shift again at any time.
Over to you: How are you Feeling?
That’s what makes our community so special - your voices help make sense of what the numbers really mean.
Do you feel like things are improving for you personally? Are you more optimistic this year, or are you still tightening the budget?
Share your thoughts in our next survey and help shape how we understand the cost of living around the world. Because while the data tells one story, your experiences make it real.
*Source: Ipsos Study, conducted on 23,772 adults 18-75 y.o., across 30 countries, interviewed between Friday, August 22, and Friday, September 5, 2025.
