Austria Producer Prices Drop 1.4% in February

Producer prices in Austria came in flat year-on-year in March 2026, following a 1.4% decline in the previous month, as energy costs continued to fall but at a softer pace (-1.7% vs -6% in February). Price growth strengthened for intermediate goods (1.2% vs 0.4%), while capital goods also edged higher (0.2% vs 0.1%). Meanwhile, consumer goods inflation slowed to 0.8% from 1% in the prior month. On a monthly basis, producer prices rose 1.4% in March, accelerating from a revised 0.2% in February, driven mainly by higher costs in electricity, gas, steam, and air conditioning supply (1.6%) and basic metals (1.6%), which offset declines in pharmaceutical products and preparations (-0.9%) and machinery and equipment (-0.1%).

Producer prices in Austria decreased by 1.4% year-on-year in February 2026, the same pace as in January. This marked the eleventh consecutive month of deflation, primarily due to continued declines in energy costs (-6.1% vs -6.0% in January). Price growth slowed slightly for consumer goods (1.0% vs 1.1%) and remained steady for intermediate goods (at 0.4%). Meanwhile, capital goods prices increased by 0.2%, after falling 0.1% in the previous month. On a monthly basis, producer prices edged up by 0.1%, matching January’s rate, amid higher prices for basic metals (0.7%) and motor vehicles, trailers, and semi-trailers (0.7%), which partially offset lower prices for electricity, gas, steam, and air conditioning supply (-1.0%) and food products (-0.3%).

Producer prices in Austria fell by 1.4% year-on-year in January 2026, easing from a 1.9% drop in the previous month. This marked the tenth consecutive month of producer price deflation, though the pace of decline moderated as intermediate goods prices rebounded, rising 0.4% after falling 0.4% previously. In addition, energy prices continued to contract but at a slower rate, decreasing 6% compared with a 6.9% drop in December. On the other hand, inflation in consumer goods slowed to 1.1% from 1.3%, while capital goods prices fell 0.1% after increasing 0.3% in the prior month. On a monthly basis, producer prices grew by 0.1% in January, recovering from a 0.3% fall in the preceding period. The improvement was driven mainly by higher costs in the manufacture of basic metals (+1.3%) and electrical equipment (+0.8%), partially offset by a decrease in the prices of electricity, gas, steam, and air-conditioning supply (-0.3%) and food products (-0.3%).