Brits' buying power abroad goes up as prices “fall”

There’s good news for families jetting away from it all this spring: the pound in their pocket is buying more.

The stronger UK pound is boosting the spending power of tourists both across Europe and in the US at the moment, with prices falling year-on-year in around 80% of 25 cities surveyed by Post Office Travel Money recently.

The biggest price falls are in Copenhagen (around 30% year on year), Barcelona and Prague (both at about 18%).

One city where your money won’t go as far this month is Stockholm, which frequently features in “Europe’s most expensive city” cost of living polls. Prices in the Swedish capital are currently hovering at about three times the level of the same sort of “tourist spending” and travel-related purchases in Budapest.

In Budapest, Brits have noticed prices falling, thank to sterling’s significantly stronger buying power, making the Hungarian capital about 11% cheaper than the same time last year.

Picturesque Portuguese capital Lisbon remains the most affordable in the Eurozone, with prices down by over 15%.  Amsterdam and Paris on the other hand were among the most expensive European capitals out of 11 Eurozone cities surveyed in the Post Office report.

Moving further north, while Scandinavia is traditionally a more expensive destination for Brits, one of the biggest drops in prices relative to the value of the pound was seen in Copenhagen, where costs (for “tourist spending items” such as accommodation or eating out) are now down by approx. 30%.

Across the pond – surprisingly, perhaps – New York came out about 11% cheaper than Boston from a “how far will your pound go” perspective.

A Post Office Travel Money spokesman said: “The rising value of sterling is good news if you are planning a city break this spring, but make sure you do your homework to get the best value.”

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