Constant 1.8 percent

Inflation stagnates, but prices continue to rise

Inflation in Austria was 1.8 percent in October, as expected.

(Bild: APA/Barbara Gindl)

In October, prices in Austria were on average 1.8% higher than in October 2023 - as expected in the flash estimate three weeks ago. Inflation was thus the same as in September and remained below the ECB's inflation target of 2.0% for the second month in a row.

Compared to the previous month of September 2024, the average price level rose by 0.3%, Statistics Austria reported on Tuesday.

Energy prices fell
"The biggest inflation-dampening effect continued to come from the year-on-year fall in fuel prices," said Statistics Austria Director General Tobias Thomas, according to the press release. "Energy prices also continued to fall, meaning that the housing, water and energy sector, which has always been one of the strongest price drivers in recent years, was only slightly above the previous year's level in October. The rise in food prices was slightly higher than general inflation."

The main price drivers compared to the previous month of September were clothing items, which increased in price by an average of 3.5%. The main price dampener compared to the previous month was cheaper household energy, which became 2.9% cheaper on average.

Restaurant and hotel prices as drivers of inflation
In a year-on-year comparison, the rise in prices for restaurants and hotels by an average of 5.8% was the main driver of inflation and influenced the inflation rate by +0.75 percentage points. Excluding expenditure on restaurants and hotels, inflation would have been 1.1%. Prices for leisure and culture rose by an average of 3.0% year-on-year. This was mainly due to package tours, which were 5.1 percent more expensive in October than a year ago. Food and non-alcoholic beverages rose by an average of 2.7 percent year-on-year.

Prices for housing, water and energy rose by an average of just 0.2 percent, mainly because household energy prices fell by 12.3 percent.

Inflation in daily shopping
The price level of the micro basket of goods, which reflects daily shopping and mainly includes food, but also daily newspapers or coffee in the coffee house, rose by 5.3% year-on-year in October. The mini shopping basket, which represents a weekly purchase and includes food, services and fuel, rose by 1.6% year-on-year.