Austria Inflation at 5-Month High

The annual inflation rate in Austria rose to 3.7% year-on-year in May 2026 from 3.4% in the previous month, marking its highest level since December 2025, according to preliminary estimates. Services inflation increased (4.4% vs 4.1% in April), primarily driving the overall rise from the previous month, partly due to higher airline ticket prices. Costs for industrial goods also rose (1.4% vs 0.8%). Meanwhile, energy-related costs increased at a slower pace, with gasoline inflation easing, while diesel and heating oil prices declined compared to the previous month. Food, beverages, and tobacco inflation also eased (2.4% vs 2.6%). On a monthly basis, consumer prices eased to 0.1% in May from 0.4% in the previous period.

The annual inflation rate in Austria rose to 3.4% in April 2026 from 3.2% in March, revised higher from initial estimates of 3.3%. This marks the highest reading since late December, with fuel and heating oil prices accounting for nearly a third of overall inflation, contributing around 1 percentage point, while transport emerged as the strongest upward driver (+7.7% annually), led by a 28.0% surge in fuels. Inflation was also pushed higher by increased costs in housing, water, electricity, gas and other fuels (+3.3%), as well as restaurants and accommodation services (+4.9%). Meanwhile, the introduction of a fuel price cap helped limit the overall increase, while an earlier Easter weighed on package holiday prices, also slightly dampening inflation. On a monthly basis, consumer prices increased by 0.4% in April, easing from a 1.2% rise in March. The harmonised inflation rate (HICP) also rose by 3.4% year-on-year, the highest in four months.

The annual inflation rate in Austria rose to 3.3% in April 2026 from 3.1% in the previous month, according to preliminary estimates. Manuela Lenk, Director General Statistics at Statistics Austria, said geopolitical tensions continued to impact inflation, particularly fuels and heating oil. Energy prices were 10.7% higher year-on-year, accelerating from 6.2% in March. The fuel price cap introduced in April cut gasoline and diesel prices by up to 10 cents per litre and reduced inflation by up to 0.2 percentage points. At the same time, Easter, which fell 2 weeks earlier than in the previous year, dampened package holiday prices. Services, the main inflation driver, eased to 3.9% from 4.5% in March. Food, tobacco and alcohol also rose 2.7% from 2.4%. On a monthly basis, consumer prices increased by 0.3% in April, easing from a 1.2% gain in the preceding period.