Living costs for UK expats rise ahead of inflation However, there are some signs of the situation easing, with the Consumer Price Index (CPI) rate of inflation dropping to 2.8% in May, the lowest level since November 2009. The Post Office research found that Spain, Cyprus and Portugal have been particularly badly hit by high living costs. Two in five expats living in Spain said that the cost of eating out had risen by more than 15%, while 71% reported an increase of more than 10% year-on-year on fuel. Nearly a third of those living in Cyprus said that prices had risen by more than 20%, with food prices seeing a particular increase. Meanwhile, 22% of people in Cyprus said their home had fallen in value by more than a fifth. Two fifths of people living in Portugal reported year-on-year rises in living costs of more than 20%. Four in 10 expats based in France said that their overall increase in costs was over 10%. While sterling recently hit a new three-and-a-half year high against the euro, the study also estimated that people transferring funds abroad via some UK banks are "wasting" £13.17 in charges per transaction or £158 a year, rather than using a fee-free provider. Just 3.5% of those surveyed said that they had not noticed an increase in living costs.