I agree on the impact of inflation against stagnating wages, something can also be said about cost of living differences in various countries (ie 1200 would go further in the Canaries than Ireland).
My point is more if you've 1200 euro base monthly wage, railway modelling is going to be very expensive indeed even prior to recent years rapid inflation, as a large new loco 175-200 would take a proprotionally larger amount of your wage against someone who earns more (though again there's the question of how far that money would go elsewhere with comparative cost of living).
For myself I see the choice in RTR as increasingly being buy fewer high end, highly detailed locos with all the bells and whistles, sound etc, for a higher price or go with simpler, cheaper models.
I've an interest in American N scale, where one can buy a Kato Big Boy with DCC sound for 500 pounds, and at the same time buy a 'basic' DC Kato or Athearn diesel for anywhere between 80-120 pound. Tariffs have obviously had an impact more recently, but that's a specific policy choice.