0
0
Austria’s inflation rate rose slightly in February, reaching 2.2% year‑on‑year and confirming the flash estimate released earlier by Statistics Austria. The uptick follows a noticeable slowdown in January, when inflation eased to 2.0% compared with December.
According to the statistical office, services once again acted as the strongest driver of price growth, while the dampening effects from household energy and fuel prices weakened compared with previous months.
Hospitality Sector Leads Price Increases
Prices in restaurants and hotels climbed by an average of 5.1%, making the hospitality sector the largest contributor to annual inflation. Housing‑related costs—including rent, water, electricity, gas, and other fuels—also rose more sharply, increasing by 1.5% after a 1.1% rise in January.
Household energy prices continued to fall overall but at a slower pace. In February, they declined by 3.3%, compared with a 3.9% drop in January. The steepest moderation occurred in heating oil prices, which fell 7.2% after a 9.4% decrease the previous month. Electricity prices also dropped less sharply, down 7.6% after an 8.2% decline, partly due to tax and levy reductions that will remain in effect until January 2026.
Food Prices Rise Faster Than Overall Inflation
Food and non‑alcoholic beverages became 2.4% more expensive, slightly below January’s 2.6% increase but still above the overall inflation rate. Coffee saw the most significant jump, surging 11.6% year‑on‑year. Ready‑made meals (+3.4%) and fruit (+2.5%) also recorded notable increases. Outside the food sector, tobacco prices rose sharply by 8.8%.
Fuel Prices Still Down, but Geopolitical Risks Loom
Fuel prices were 5.1% lower than a year earlier, following a 6.5% decline in January. However, the recent surge in prices at the pump triggered by the Iran conflict in March is not yet reflected in the February data.
The Austrian government announced on Wednesday that it plans to counter rising fuel costs with a slight reduction in the mineral oil tax. Wifo inflation expert Josef Baumgartner expects inflation in March to rise by around 0.6 percentage points due to higher oil product prices. Economists at Bank Austria similarly anticipate inflation approaching 3% if the conflict continues.
Eurozone Comparison
From January to February, Austria’s overall price level increased by 0.8%. The harmonized index of consumer prices (HICP), which allows comparisons across the euro area, rose by 2.3% in Austria.
Across the eurozone, consumer prices increased by 1.9% in February, Eurostat reported—below Austria’s rate. The European Central Bank continues to target an annual inflation rate of 2.0%.
- source: vienna.at/picture: pixabay.com
This post has already been read 313 times!
