According to a forecast, the purchasing power of people in Germany could increase significantly more this year than in 2025. On average, it is 31,193 euros per capita and is therefore 5 percent or 1,466 euros higher, said market researcher NIQ. The sum is therefore available to consumers for consumer spending, housing, leisure and savings.
After moderate increases in recent years, purchasing power is noticeably increasing again “because disposable incomes are increasing significantly,” says Markus Frank, geomarketing expert at NIQ. The reason for this is rising net wages and collective wages as well as the increase in the minimum wage. However, the real development of purchasing power is being slowed down by moderate inflation and uncertainties in customs policy.
Bayern in front, Berlin below the cut
There are still major regional differences in Germany. According to the study, people in Bavaria have 33,666 euros per capita per year, around 8 percent more than the national average. Second and third places are still occupied by Hamburg (33,019 euros) and Baden-Württemberg (32,813). Bremen remains at the bottom with a purchasing power of 27,172 euros per capita.
When it comes to districts, Starnberg (42,751 euros) and Munich (41,355) are ahead, as in the previous year. In terms of purchasing power, both regions are around a third above average. The ranking of urban districts with more than 500,000 inhabitants leads Munich (40,800 euros) ahead of Düsseldorf (35,715). At 30,178 euros, Berlin comes in at a good three percent less than the national average.
Inflation is a decisive factor
The values calculated by NIQ are nominal and do not take inflation into account. How much of the increase actually reaches people depends on how consumer prices develop. According to the Ifo Institute, the inflation rate this year is likely to be 2.2 percent – and therefore at the same level as in 2025. According to NIQ, the increase in purchasing power last year was 2.1 percent and could therefore not fully compensate for the price increases.
The market researchers’ evaluation includes the available net income including state transfer payments such as pensions, unemployment benefits and child benefits. Expenses for living costs, insurance, rent and additional costs such as gas or electricity as well as clothing are not taken into account. If these expenses increase more rapidly, an increase in purchasing power does not necessarily mean that people have more money left for consumption.
The calculations are based, among other things, on wage and income tax statistics, data on state benefits and forecasts from economic institutes.