Prices in Germany increase: insurance, postage and refueling!

Inflation in Germany reached its peak in 2024, and the effects are clearly noticeable at the beginning of 2025. Prices rise in various areas, while some are affected by returns. The increase in health insurance contributions and rising insurance costs ensure additional financial burdens for citizens.

From January 1, 2025, the average additional contribution for statutory health insurance will increase by 0.8 percentage points to 2.5 %. With a gross salary of 3000 euros, this means a monthly additional load of 24 euros, which is evenly divided between employer and employee. Private health insurance companies also announce increases of up to 20 %. The costs of car insurance, due to higher repair costs: The prices for spare parts have increased by over 25 % in the past three years, and the average repair costs for car damage rose from 2700 euros to 4,000 euros in 2023 in 2017.

increase in living costs

In addition to health insurance, consumers also have to adjust to higher costs in other areas of life. From January 2025, the prices for the Germany ticket will increase from 49 euros to 58 euros per month. The prices for Deutsche Post's services are also increased; Postage for a standard letter rises from 85 cents to 95 cents, while the prices for postcards are also increased to 95 cents.

The CO₂ tax is also increased, from 45 euros to 55 euros per ton, which will affect fuel prices directly. The gasoline price is expected to increase by about 2.8 cents per liter. In addition, an average of 21 % can be expected to increase the vehicle insurance costs.

The price increases are a reaction to financing gaps in the health insurance companies and the Germany ticket as well as rising costs in various industries. The cost points that rise are also residential building insurance, which are raised by around 2.47 %, some due to increased construction costs and extreme weather events. In contrast, there are some declines in the energy prices, such as the average budgetary energy prices that decreased by 4 %. Heating oil was reduced by 17.9 %, while district heating prices increase by 31.8 %.

Another price increase is expected at burials. The cost of coffins has increased by a third in recent years, while the transfer costs due to the increased gasoline prices become more expensive. In addition, the cities increase the cemetery fees due to increased costs.

The annual increase in price will also affect some areas such as coffee prices that are expected to increase by at least 30 %, and the flight prices that will increase by increasing the security fees. The security fee at airports increases from 10 euros to 15 euros per passenger, which will lead to higher total costs for travelers.