Germany faces rising costs in dining and childcare

Rising costs are impacting various sectors in Germany, particularly in the hospitality and childcare industries. An investigation by SWR in Baden-Württemberg and Rhineland-Palatinate reveals that restaurant prices have increased by an average of 36 percent since 2019. Approximately one-third of the analyzed menu items saw price hikes of at least 50 percent. Despite a planned permanent reduction in VAT for restaurant meals from 19 to 7 percent starting in 2026, many establishments have not lowered prices, with 42 percent actually increasing them to offset rising costs for food, energy, rent, and personnel.

In Baden-Württemberg, childcare (Kita) fees are also rising. This increase is driven by higher personnel costs following recent public service collective bargaining agreements aimed at making the profession more attractive, alongside inflation in material and energy costs. Municipalities facing budget deficits due to declining tax revenues are passing these costs on to parents to avoid cutting other essential services like school renovations or playgrounds.