USAG Wiesbaden

Cost of Living

Substantial increase in energy prices of 12.6% compared with a year earlier

The prices of goods (total) increased by 5.6% between August 2020 and August 2021, which was above average. Especially the increase in Energy product prices (+12.6%) was markedly higher than overall inflation. The price increase for such products accelerated again (July 2021: +11.6%). In this context, especially the low price level of a year ago (base effects) and the CO2 charge introduced at the beginning of the year had an upward effect on the inflation rate. Marked price increases were recorded for heating oil (+57.3%) and motor fuels (+26.7%). The prices of natural gas (+4.9%) and electricity (+1.7%) rose, too.

Food prices rose by 4.6% in August 2021 compared with the same month of the previous year. Compared with August 2020, higher prices were observed especially for vegetables (+9.0%) and dairy products and eggs (+5.0%). In addition to non-durable consumer goods, consumer durables such as transport equipment (+5.5%) and furniture and lighting equipment (+4.0%) saw significant price increases. Declining prices were only recorded for few goods, such as television sets and the like (-0.7%).

Source: Statistisches Bundesamt


The cost of living in Germany is quite reasonable compared to other European countries. On average, to cover your living expenses in Germany you will need around 934 euros per month (around $906 US dollars) or 11,208 euros per year (around $10,876 US dollars).

According to the press release by Germany's Federal Statistical Office, Destatis, consumer prices rose by 5.3% in February by 1.9% on August 2022. The inflation rate rose by 0.9% compared to January 2022 by +10.0% in September 2022, officials said in a press release.