💶 European Pain-Flation: A Digital Nomad's View on Price & Perception
How living in Asia opened my eyes to the pricing paradox in Europe.
As a European digital nomad currently exploring Asia, I've started seeing consumerism, pricing strategies, and the inevitable "pain" of inflation through a totally new lens.
Recently, while browsing a supermarket in Japan, I spotted a bottle of organic Italian extra virgin olive oil priced at around 1790 yen—roughly €11, surprisingly similar to its cost in Italy. This struck me as odd, especially considering the transportation and import expenses involved in shipping it halfway across the globe. Meanwhile, in Thailand or Vietnam, prices for everyday goods are consistently lower than what we're accustomed to in Europe. It made me wonder why such a significant difference exists.
Back home, we're often told that prices rise due to higher production costs. However, this reasoning feels questionable when you consider that today, most big corporations use automated or semi-automated production lines, significantly reducing their expenses. Take something simple, like a can of Coke: in Europe, it might cost about €3, while in Japan it's around €1, and in Thailand, just about 60 cents. Clearly, this difference isn't merely about production costs; it's also due to the higher profit margins companies comfortably charge in Europe—not just at the production level but through distribution and retail as well.
Think about it—selling 100 products at a high margin to make €100 profit is easier and less work-intensive than selling 200 products at lower margins to achieve the same €100 profit. Companies understand this, and consumers in the West continue paying without questioning too much.
It's true that countries like Thailand and Vietnam have lower disposable incomes, translating into an unwillingness—or inability—to accept higher prices. In contrast, Europe's "pain threshold" for prices is simply higher, something companies knowingly exploit to maximize profits.
Even my grandma (yes, my GRANDMA!) recently remarked, "With Trump's tariffs, prices are going to rise even further," illustrating how deeply ingrained these narratives about inevitable price hikes have become, regardless of actual economic factors.
In reality, every global event—whether slight changes in raw material costs or geopolitical tensions—provides businesses with an excuse to disproportionately increase prices. Remember how energy prices surged when natural gas costs rose due to the war in Ukraine? Those prices remained significantly high, even after natural gas costs returned to pre-conflict levels.
This awareness is part of why many digital nomads, including myself, find Asia so appealing. Here, companies either choose not to—or simply can't—inflate prices excessively, as consumers would not be able to afford it. Choosing to live in Asia has become more than just a lifestyle decision for many young people; it's quietly becoming a subtle rebellion against the the price exploitation—or the growing 'pain-flation'—we've come to accept in Western countries.
Nicholas Perpiglia - Contributor and Digital Nomad