Is Munich more expensive than the rest of Germany?

Munich’s cost‑of‑living index is 115, meaning it is about 15 % more expensive than the German national average (which is set at 100). This higher index reflects pricier housing, groceries, dining out and entertainment. While salaries are also higher—average annual earnings are $55,284—the extra income often balances the increased expenses. For everyday budgeting, expect to spend more on rent, restaurant meals and leisure activities than you would in smaller German cities, but public services and transportation remain comparable in price across the country.