Purchasing power in regional prices: Berlin at the bottom of the ranking
The purchasing power of Berliners is low in a nationwide comparison, partly due to high rental costs. If per capita income is adjusted for the regional cost of living, Berlin ranks 376th out of 400 compared to all other cities and districts, according to calculations by the German Economic Institute (IW). The capital city is in a similar position to Augsburg, Freiburg, Potsdam, Frankfurt am Main and Mainz, for example: in all of these cities, relatively low average nominal (i.e. not price-adjusted) incomes meet a high cost of living. This puts these cities at the bottom of the IW ranking.
According to the evaluation, the average nominal income of Berliners is 22,658 euros per year - in a nationwide comparison, this means 294th place. At the same time, Berlin is ranked 38th out of 400 in terms of price level - resulting in comparatively low purchasing power or a price-adjusted income of 21,469 euros.
The researchers identified the highest purchasing power in Germany in the district of Starnberg (Bavaria), which is almost EUR 11,000 higher than the Berlin figure. The top ten also includes three other Bavarian districts. At the bottom of the ranking are the cities of Duisburg (19,604 euros), Offenbach am Main (19,082 euros) and Gelsenkirchen (18,886 euros). The researchers saw the highest price level in the city of Munich, followed by the district of Munich, Frankfurt
The calculations are based on a regional price index developed by the IW and the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) as at 2022 and income data from the Federal Statistical Office as at 2021.
Consumers in Berlin, with an average nominal income of 22,658 euros per year, struggle to maintain their purchasing power due to high regional prices, placing Berlin 38th out of 400 in the price level ranking. This results in a price-adjusted income of just 21,469 euros, significantly lower than cities with higher per capita income and lower prices, such as Starnberg or Duisburg.
Source: www.dpa.com
