3.2 percent in January

End of electricity price brake drives up inflation

(Bild: HELMUT FOHRINGER / APA / picturedesk.com)

The abolition of measures to curb electricity prices drove inflation up sharply in January. Consumer prices were on average 3.2 percent higher than in the same month last year. 

"The expiry of the electricity price brake, the increase in grid fees for electricity and natural gas and the increase in renewable energy subsidies and the CO2 tax caused inflation in Austria to rise at the beginning of 2025," said Statistics Austria Director General Tobias Thomas in a press release. In comparison: In December 2024, inflation was only 2.0%.

Housing, water and energy as price drivers
According to Statistics Austria, food became slightly more expensive in January than in December, but the price increase in January was only around half as high as overall inflation. "In gastronomy, on the other hand, inflation was almost twice as high as the general price increase," said the head of Statistics Austria. After twelve months, housing, water and energy were once again the most important drivers of inflation in a year-on-year comparison with a significant increase in prices (+4.4 percent on average).

Restaurants and hotels increased in price by an average of 5.6 percent compared to the same month last year. Prices for transportation rose by 2.4 percent. Food and drink prices (non-alcoholic) rose by 2.1 percent.

Daily shopping cost 3.7 percent more
The micro basket of daily groceries collected by Statistics Austria increased in price by 3.7% year-on-year in January. The price level of the mini shopping basket, which represents a weekly purchase and includes fuel as well as food and services, rose by 3 percent.