Austria Inflation Rate Confirmed at 3.8%

The annual inflation rate in Austria eased to 2% in January 2026 from 3.8% in the previous month. This marked the lowest reading since December 2024, mainly driven by a 4.9% drop in energy prices after the base effects of the electricity price cap faded, energy taxes were cut, and renewable energy subsidies were reduced. Prices for industrial goods also rose only marginally by 0.8%, while inflation for services and for food, tobacco and alcohol slowed to 3.8% and 2.7%, respectively. “This means that, following the high inflation rates of 2025, inflation in Austria will fall back to the levels seen in the second half of 2024. Electricity, gas, heating oil, fuel and industrial goods had a dampening effect”, according to Manuela Lenk, Director General Statistics at Statistics Austria. On a monthly basis, consumer prices fell by 0.7% in January, marking the first decline in four months and the sharpest since January 2019, following a 0.3% gain in the preceding period.

The annual inflation rate in Austria eased to 3.8% in December 2025, confirming preliminary estimates, following a 4.0% rise in each of the previous three months. Prices moderated in housing and utilities (6.5% vs 6.7% in November), health (5.2% vs 5.3%), transportation (2.1% vs 2.6%), recreation and culture (2.4% vs 3.0%), and restaurants and hotels (5.5% vs 5.9%). At the same time, clothing and footwear costs declined (-0.5% vs 1.5%), while deflation deepened in communication (-6.0% vs -5.7%). In contrast, prices rose for food and non-alcoholic beverages (3.9% vs 3.6%), alcoholic beverages and tobacco (3.7% vs 3.5%), education (4.9% vs 4.5%), rebounded in furnishings, household equipment, and maintenance (0.1% vs -0.6%), and remained steady for miscellaneous goods and services (4.5%). On a monthly basis, consumer prices stood at 0.3% in December, matching the same pace as in November.

The annual inflation rate in Austria slowed to 3.8% in December 2025 from 4% in the previous month, marking the lowest reading since July, preliminary estimates showed. “Energy prices in particular slowed at the end of the year, as fuel prices had a dampening effect after three months of increase. Electricity, on the other hand, remained expensive. On average, energy prices rose by 9.0% in December, following an increase of 10.9% in November. Once again, the strongest driver of inflation was the services sector. Prices here rose by 4.4% in December, almost as much as in November with +4.5%. Inflation accelerated for food, tobacco and alcohol. Here, prices rose by an above-average 4.1% in December, following an increase of 3.6% in November”, according to Statistics Austria Director General Manuela Lenk. On a monthly basis, consumer prices rose by 0.4% in December, following a 0.3% gain in the preceding period.