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EXPLAINED: The everyday products getting more expensive in Germany

Inflation is rising faster in Germany than at any point since 1993. We explain what that means for the price of certain items.

A woman takes butter off a shelf in a German supermarket.
A woman takes butter off a shelf in a German supermarket. Photo: picture alliance / dpa | Oliver Berg

Germany’s Federal Statistics Office announced last week that average inflation went up 3.1 percent in 2021 – the highest increase since 1993. And if we look at December 2021 compared to December 2020, there’s been an even sharper spike of 5.3 percent.

That’s a lot higher than the European Central Bank’s inflation target of around 2 percent, although experts say consumer prices should level out again. But what does it all mean for what you might pay at the grocery store, for your energy bills, or for new furniture and electronics?

READ ALSO: Inflation in Germany hits highest rate since 1992

A new analysis by Germany’s Federal Statistical Office (Destatis) sheds some light on how prices have changed in recent years. 

To begin with, the Destatis agency uses a hypothetical “basket” of goods based on what the average German household purchases, and compares how the prices of all those items put together change over time to come up with its figure.

That means if you don’t drive your own car, for example, you won’t experience the same inflation yourself that another household in Germany might, since Destatis includes petrol prices in its inflation calculation.

You can use the Destatis Personal Inflation Calculator yourself to see exactly how much more you can expect to pay. Below are a few general highlights from the price index.

Supermarket bills see big increases

Using 2015 as a base, certain grocery products saw particularly clear increases when individual measurements were last taken at the end of November 2021.

Butter tops the bunch with a 57.1 percent spike in price in the last six years. Whole milk, sliced cheese, and fresh bread rolls also saw increases – at 26.5 percent, 12.1 percent, and 15.2 percent respectively.

READ ALSO: Why everything is suddenly getting so expensive in Germany

A shopper holds a trolley at a Berlin supermarket.
A shopper holds a trolley at a Berlin supermarket. Photo: picture alliance/dpa | Fabian Sommer

Getting around costs more

Those who primarily or exclusively use public transport in Germany are getting hit considerably less with price increases than those who have to fill up their own vehicles regularly.

But fuel costs have hit public transport riders as well, who are paying just over 13 percent more now than they were in 2015.

Supergrade petrol has seen a 26 percent increase though, and diesel has spiked by 35 percent.

Heating and powering your home

The most volatile price fluctuations recently are in the price of heating oil. After decreasing by over 30 percent in 2020 relative to 2015 prices, it is now 47 percent more costly to heat your home in Germany now than it was six years ago. Electricity is also up about 12 percent.

READ ALSO: Households in Germany to get some relief on electricity bills

A radiator in a German home.
The cost of energy bills have skyrocketed in recent months. Photo: picture alliance/dpa/dpa-Zentralbild | Fernando Gutierrez-Juarez

Recreation and eating out

Unsurprisingly, going out for either a drink or a bite to eat has also gone up in price, but fairly uniformly across the board.

Whether getting a drink at a bar, a kebab, a Fischbrötchen or Currywurst after a late night out, or enjoying sit-down meal at a restaurant – prices for all these forms of going out have gone up by roughly the same amount – 17-19 percent – compared to 2015 rates.

Heading out to see a movie costs about 11 percent more than it did six years ago.

A person holds Fischbrötchen in Schleswig-Holstein.
A person holds Fischbrötchen in Schleswig-Holstein. Eating out costs more in Germany. Photo: picture alliance/dpa/dpa-tmn | Annette Frühauf

Electronics – where the savings are

The one notable exception to the upward trend in German consumer prices is in electronics, which are considerably more affordable now than they were in 2015.

A new mobile phone without a contract is 28 percent less expensive, while a new television set has dropped in price by a third.

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CLIMATE CRISIS

How installing solar panels at home is set to become easier in Germany

As part of its drive to roll out renewable energy, Germany has passed a new law that will make it easier to install solar panels on your balcony. Here's what homeowners and renters need to know.

How installing solar panels at home is set to become easier in Germany

With rising prices affecting almost every area of life, many people are looking for ways to cut costs wherever they can. 

When it comes to electricity, this could include looking at renewable options like installing solar panels on your balcony.

According to data from the Federal Network Agency’s Market Data Register, this is an increasingly popular choice. As of April 2nd this year, there were around 400,000 balcony solar units in operation in Germany, compared to just 230,000 in the summer of last year.

These little photovoltaic systems can be a great way to become more self-sufficient by producing your own energy for the home – but despite the benefits, you may have been put off by fears of mountains of paperwork and an uncertainty around the rules.

READ ALSO: How to install a solar panel on your balcony in Germany (even if you rent)

The government’s new Solar Energy Package, passed on Friday, aims to solve this issue by making it simpler for people in apartments or single-family homes to install solar panels and use their own energy.

It’s part of a major drive to roll out renewable energy in Germany, pushing up photovoltaic capacity from 7.5 gigawatts in 2022 to 22 gigawatts in 2026 and ultimately 215 gigawatts by 2030. 

But what exactly is changing for homeowners and renters? Here’s what we know so far.

Streamlined registration process

Rather than having to register with your local network operator when installing solar panels on your balcony, in future simply registering with the Federal Network Agency’s Market Data Register will suffice. This streamlined process has been in place since April 1st, 2024. 

Increased capacity allowance

Solar devices installed in the home are allowed to be more powerful in future. If your future device has an installed output of up to 2 kilowatts and an inverter output of up to 800 volt-amperes in total, you can register it quickly in a simple and unbureaucratic registration process.

Previously, devices were only allowed an inverter output of up to 600 volt-amperes. 

No barriers on meters

In a transitional measure designed to encourage more people to switch to solar energy, balcony installations can be run through any type of meter on the market.

Solar panels on a German balcony

Solar panels on a balcony in Germany. The government is making it easier for people to produce – and use – their own solar energy. Photo: picture alliance/dpa/iStock.comMaryanaSerdynska | Maryana Serdynska

This includes meters without a backstop, which run backwards when more energy is produced than is used. These, alongside normal one-way meters with a backdrop, will be permitted for a limited time until modern digital meters can be installed. 

Under previous rules, both older types of meter were prohibited. 

Simpler energy storage

In future, balcony solar systems will be able to store energy with a conventional shockproof plug. This will make installation way easier than it was before.

READ ALSO: German government to subsidise up to €30,000 of heating revamp costs

Easier operation of multi-unit buildings

To enable tenants in apartment blocks to use cheaper solar power from roofs, garages or battery storage systems directly, the new instrument of “communal building supply” is being introduced. This eliminates the complicated requirement to feed energy into the general electricity grid and permits residents to use the energy generated themselves.

In future, tenants will also be able to take out an affordable supplementary tariff themselves for electricity that is not covered by their solar installation. Some rules on this still need to be clarified though, so watch this space. 

Tenant subsidies in commercial buildings

In future, tenant electricity will also be subsidised for commercial buildings and ancillary facilities such as garages if the electricity generated there is consumed immediately, i.e. without being fed through the grid.

This allows several energy systems to be combined and should avoid the overwhelming technical barriers that were previously a problem in residential neighbourhoods. 

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