Inflation at 1.8%

Prices for alcohol, food and tobacco have risen

(Bild: Rojsek-Wiedergut Uta)

The inflation rate for October 2024 is expected to be 1.8%, with prices rising by 0.3% compared to the previous month of September, according to Statistics Austria's CPI flash estimate on Thursday. The strongest price drivers are services, which rose by 4.6% compared to the same month last year. Energy prices had the greatest inflation-dampening effect.

"With a drop of over eleven percent compared to the same month last year, they are now reducing the inflation rate by more than one percentage point," the statisticians calculate. Accordingly, prices for food, tobacco and alcohol are rising more strongly again for the fourth month in a row and, with an increase of three percent, are developing well above the general inflation rate.

Surprising rise in inflation in Germany
This means that inflation in Austria in October was the same as in September. In neighboring Germany, inflation rose surprisingly and unexpectedly sharply from 1.6 to 2.0 percent in October.

The harmonized index of consumer prices (HICP) rose by 1.8 percent in October 2024 compared to the same month last year; according to a preliminary flash estimate, it was up 0.4 percent on the previous month of September.

Politicians see slow stabilization
Labor and Economy Minister Martin Kocher (ÖVP) said today that the inflation rate remains at a low level, similar to the previous month. The fact that, according to national calculations, inflation rates in October 2024 compared to September 2024 are rising again in some other eurozone countries, and that this is not the case in Austria, is helping to stabilize the economic environment.

Finance Minister Magnus Brunner (ÖVP) also emphasized that the inflation rate remains at a low level. "In the Harmonized Index of Consumer Prices, Austria is now below the figure for Germany," said Brunner.