Between 2020 and 2025, Germany experienced a nationwide inflation rate of 21.8 percent, but this increase was unevenly distributed across its federal states. Brandenburg saw the highest inflation, exceeding the national average by 1.8 percentage points, followed closely by Bremen and Saxony. Conversely, Hamburg experienced the lowest inflation, with prices rising 2.1 percentage points below the federal average. The primary driver of these regional disparities is housing costs, including rent, electricity, and gas. Despite higher inflation in some eastern German states, several, including Thuringia, experienced real wage gains, meaning wages outpaced price increases, leading to increased purchasing power, while many western states saw real purchasing power decline.