Prices of food remain static amidst escalating costs

The German government has announced that the Citizen's Allowance will not be adjusted in 2026, following a series of price changes across various sectors.

Significant reductions in fuel prices by 6.8 percent and light heating oil by 9.5 percent were observed in 2025. However, these reductions do not extend to Citizen's Allowance recipients, as the costs of accommodation and heating are covered by the job center at an appropriate level.

On the other hand, services overall have seen a 3.4 percent increase in prices. Food prices, particularly for coffee, fruit, vegetables, and butter, have risen by 2.8 percent due to complex reasons such as climate change and poor harvests. Insurance prices have also increased by 9.4 percent.

The inflation rate stabilized at 2.1 percent in May 2025, but this has not prevented food prices from rising. Prices for combined passenger transport have risen by 11.4 percent.

The non-increase of the Citizen's Allowance is justified by the "strong" increases in recent years, which have compensated for at least the inflation rate. However, the argument for the strong increases in the Citizen's Allowance in 2023 and 2024 as justification for a zero round in 2026 is disputed.

In 2026, single Citizen's Allowance recipients will continue to receive 563 euros per month. Children's Citizen's Allowance varies depending on their age, ranging from 357 to 471 euros per month.

The reduction in air travel by 16.8% is not relevant to Citizen's Allowance recipients. Labor Minister Barbara Bas has called for harsher penalties for Citizen's Allowance recipients who miss appointments. Notably, the politician currently advocating for tougher penalties is Ulrike Scharf, who made this demand in January 2025.

It is important to note that there is no immediate retroactive increase of the transfer performance for the Citizen's Allowance. The argument for strong increases in the Citizen's Allowance in 2023 and 2024 as justification for a zero round in 2026 is disputed, and the non-increase of the Citizen's Allowance is justified by the "strong" increases in recent years.

In conclusion, while there have been mixed economic trends in 2025, the Citizen's Allowance will remain unchanged in 2026. The government's decision not to adjust the allowance is justified by the recent increases, which have compensated for at least the inflation rate. However, the debate surrounding the justification for the zero round in 2026 continues.

Prices of food remain static amidst escalating costs