Germany: cost of living

How much does electricity cost in Germany?

Households in Germany paid an average of 37.97 cents per kilowatt hour for electricity in the first half of 2026, according to Destatis average gas and electricity prices. That was 6.4% less than in the second half of 2025 and 4.9% less than a year earlier, but 16.4% more than in the first half of 2021. Non-household customers paid 17.64 cents.

The averages include energy, network charges, taxes and levies, weighted by consumption, and are collected twice a year under EU rules. Destatis's September 2026 consumer price release shows electricity prices 5.5% lower than a year earlier, which it attributes partly to government relief measures in force since the start of 2026.

Official sources: Destatis: average gas and electricity prices · Destatis: inflation in September 2026

How much does gas cost for households in Germany?

Private households paid an average of 11.58 cents per kilowatt hour for natural gas in the first half of 2026, according to Destatis average gas and electricity prices. That was 5.3% less than in the second half of 2025 and 4.5% less than in the first half of 2025, but 80.7% more than in the first half of 2021, before the energy crisis.

The price is a weighted average across consumption bands and includes standing charges, network fees and taxes. In the consumer price index, Destatis reports natural gas prices (excluding operating costs) 2.8% lower in September 2026 than a year earlier, while heating oil was 74.9% higher, so households heating with oil faced very different changes.

Official sources: Destatis: average gas and electricity prices · Destatis: inflation in September 2026

How much have petrol prices risen in Germany?

Motor fuel prices in Germany were 37.1% higher in September 2026 than a year earlier, according to Destatis press release No. 364 of 13 October 2026. In August the annual rise had been 27.7%. Between August and September alone, fuels rose 6.9%, with diesel up 7.5% and super-grade petrol up 6.7%. Destatis links the increase to crude oil prices since the start of the Iran war.

These are index changes, not prices per litre. Destatis notes that the renewed cut in energy tax on motor fuels, which took effect on 1 October 2026, was not yet reflected in the September figures.

Official sources: Destatis: inflation in September 2026

Are food prices rising in Germany?

Food prices in Germany were 0.4% higher in September 2026 than a year earlier, below overall inflation of 3.3%, according to Destatis press release No. 364 of 13 October 2026. Some items rose much more: eggs (+15.2%), fresh vegetables (+12.0%) and fish and seafood (+4.5%). Others fell, including edible fats and oils (-15.0%), butter (-29.5%), dairy products (-5.5%) and fresh fruit (-4.9%).

The food index covers food bought in shops, not restaurant meals. Core inflation, which excludes food and energy, was 2.4%. Destatis publishes a flash estimate at the end of each month and confirmed results about two weeks later.

Official sources: Destatis: inflation in September 2026

What is the VAT rate in Germany?

The standard rate of VAT in Germany is 19%, and a reduced rate of 7% applies to the goods and services listed in law, according to section 12 of the Value Added Tax Act, published by the Federal Ministry of Justice. The reduced-rate list includes most food, books and newspapers, local public transport and, under item 15, restaurant and catering services, with the exception of drinks.

Because the rate depends on the type of supply, a single purchase can mix rates; for example, a meal is taxed at 7% while drinks served with it are taxed at 19%. Changes to rates are made by amending this section of the Act.

Official sources: Value Added Tax Act, section 12

How much do households in Germany spend each month?

Private households in Germany spent an average of €3,257 a month on consumption in 2024, according to Destatis figures on consumer spending and living costs. Of that, €309 a month went on leisure, sport and culture. In 2022, the comparable total was €2,846 a month.

The figures come from household budget surveys in which households record their income and spending. Consumption spending covers housing, food, transport, leisure, restaurants and hotels, communication, health, clothing and education, but not taxes, social contributions or saving. Averages hide wide differences by household size and income; Destatis publishes breakdowns by household type and income decile on the same page.

Official sources: Destatis: consumer spending and living costs

What is the inflation rate in Germany?

The IMF puts consumer price inflation in Germany at 2.2% in 2025. The peak was 6.9% in 2022 and the low 0.1% in 2020. Across Europe & Central Asia the middle value was 3.7%, and Germany placed 40th highest of 48. Of 165 countries with 2025 data, 106th highest.

What is household spending per person in Germany?

The latest figure from the World Bank, for 2025, is $24,108. That is the highest since at least 2005. Across Europe & Central Asia the middle value was $11,266, and Germany placed 9th highest of 44. Worldwide: 12th of 124.

What is the extreme poverty rate in Germany?

The latest figure from the World Bank, for 2022, is 0.7%. It is the top of the series, which starts in 2005. Europe & Central Asia median: 0.5%; Germany is 12th highest of 35. Of 72 countries with 2022 data, 40th highest.

What is the poverty rate in Germany?

The latest figure from the World Bank, for 2021, is 14.8%. Across Europe & Central Asia the middle value was 15.9%, and Germany placed 23rd highest of 40. World rank, highest first: 51st of 72.

What is income inequality in Germany?

In 2022, the Gini index in Germany was 33.7, according to the World Bank. No year since 2005 has been higher. Across Europe & Central Asia the middle value was 31.6, and Germany placed 9th highest of 35. World rank, highest first: 39th of 72.

How many people in Germany face food insecurity?

4.1%: that is moderate or severe food insecurity in Germany for 2024, according to the FAO. It is the top of the series, which starts in 2015. Europe & Central Asia median: 7.6%; Germany is 37th highest of 45. World rank, highest first: 127th of 135.