Back at 3.3 percent

Expensive energy continues to drive up inflation

Inflation is rising again - and thus moving away from the ECB's target.

(Bild: stock.adobe.com – Pormezz)

The inflation rate in Austria rose to 3.3 percent in February, up from 3.2 percent at the beginning of the year. Compared to January, prices rose by 0.6 percent, Statistics Austria announced in a flash estimate on Monday.

Services proved to be the main price driver compared to February 2024 with an increase of 4.5%. As they account for almost half of the consumer price index, they drove inflation up by 2.165 percentage points.

Expensive grid fees, no longer a brake on electricity prices
However, inflation was also driven by significantly higher energy prices. On the one hand, the electricity price brake was discontinued, while on the other, grid fees and the CO2 tax increased. As a result, prices rose by 3.4 percent year-on-year.

Food has become less expensive
In contrast, the price increases for food and other goods were below the inflation rate. At 2.8%, the price increase for food, tobacco and alcohol was well below the general inflation rate. Industrial goods dampened the inflation rate with an increase of just 1.3%.

The harmonized consumer price index (HICP) according to the European standard shows a year-on-year increase in inflation of 3.5 percent for February and 0.6 percent compared to the previous month.