0
0
Consumer prices rose by 3.3 percent year-on-year in June, as Statistics Austria announced on Thursday. The last time the average price level rose so sharply was in May 2024. With this inflation rate, Austria was once again significantly above the eurozone’s inflation rate, which stood at only 2 percent. Compared to the previous month, domestic prices rose by 0.5 percent in June. Housing and energy were the strongest price drivers.
Daily shopping became 5.6 percent more expensive
The price level of the micro basket, which reflects daily shopping and mainly contains food, as well as daily newspapers and coffee in coffeehouses, rose by 5.6 percent year-over-year in June, significantly above the average inflation rate. The price level of the mini basket, which reflects weekly shopping and includes food, services, and fuel, rose by only 3.2 percent.
The rise in consumer prices is mainly due to fuel prices having a less dampening effect on inflation in June than in recent months, according to Thomas Burg, Director General of Statistics Austria, in a press release. “However, food, which rose above average for the first time since October 2024, is also partly responsible for the price increase.” Price increases for electricity and restaurants, “the two biggest price drivers year-on-year,” remained at a consistently high level. Without price increases for electricity, hospitality services, and food, inflation would be only 1.6 percent.
Housing and energy were the strongest drivers of inflation
The costs of housing, water, and energy rose even more sharply in June, averaging 5.2 percent, than in May (up 5 percent). According to Statistics Austria, this area remained the strongest driver of year-on-year inflation. Rents (including new leases) rose by a further 3.9 percent, following a 4.1 percent increase in May. Housing maintenance costs rose by 2.8 percent in June (May: plus 2.7 percent).
Prices for household energy rose by 9.6 percent, even more significantly than in May (plus 8.9 percent). According to Statistics Austria, this was mainly due to heating oil, which fell by 9.3 percent in June, less than in May (minus 13.1 percent). Solid fuels cost 4.4 percent less in June than a year earlier, but in May, prices had fallen by 7.8 percent.
Electricity prices rose by 35.7 percent
Electricity prices rose by 35.7 percent, driving prices up almost as much as in May (up 36.2 percent). Since the beginning of the year, the electricity price brake, the grid cost subsidy for GIS-exempt households, and the electricity cost supplement subsidy for households with more than three people have no longer had a price-dampening effect; grid fees and the electricity levy have been increased; and the renewable energy subsidy and the renewable energy contribution have been reintroduced, according to Statistics Austria.
Gas prices, on the other hand, continued to dampen inflation, falling by 9.1 percent in June after a 9 percent decline in May. According to the data, district heating prices remained stable at a rate of minus 0.2 percent.
Restaurants, hotels, and food are also significantly more expensive
Prices in restaurants and hotels rose by an average of 5.5 percent in June (May: plus 5.6 percent). Catering services became 5.6 percent more expensive (as of May: 5.8 percent). Inflation rose noticeably to 5.5 percent for accommodation services (May: plus 3.9 percent).
Food and non-alcoholic beverages rose in price by an average of 4.7 percent in June this year, significantly more than in May (up 3.5 percent). According to statisticians, the decisive factor here was the price development for food, which rose by 3.8 percent in June (compared to May, when it increased by 2.4 percent).
Meat in particular saw a price jump of 4.8 percent (May: plus 2.2 percent). Milk, cheese, and eggs also became noticeably more expensive, with a price increase of 5.2 percent (as of May, a 4 percent increase). Vegetables cost 2.6 percent more (May: plus 0.7 percent), fruit 5.5 percent more (May: plus 4.6 percent), bread and cereal products 2.2 percent more (May: plus 1.7 percent), and oils and fats 1.5 percent more (May: plus 0.8 percent).
Coffee prices rose by almost 27 percent
Prices for non-alcoholic beverages rose by 12 percent, as they did in May. Coffee prices shot up by 26.8 percent (May: plus 22.3 percent). Lemonade prices, on the other hand, remained stable with a marginal increase of 0.1 percent, after rising by 5.1 percent in May.
In the leisure and culture group, prices rose by an average of 4.2 percent in June (May: plus 3.7 percent). According to Statistics Austria, this was mainly due to package tours, which were 10.5 percent more expensive. Airline tickets became 4.1 percent cheaper.
Transport prices rose slightly by 0.3 percent in June, after falling by 1.0 percent in May. According to the data, this was mainly due to fuel prices, which fell by 5.4 percent in June, significantly less than in May (a decrease of 9.1 percent). In addition, the rise in prices for used cars accelerated by 8.1 percent in June (May: plus 4.3 percent). Repairs to private vehicles cost 3.8 percent more, while new cars cost 0.3 percent more.
Clothing is cheaper; shoes are more expensive
Clothing became cheaper, with prices falling by an average of 4.8 percent (in May, prices fell by 2.9 percent). Shoes became 1.7 percent more expensive (as of May, an increase of 2.5 percent).
According to the EU-wide harmonized consumer price index (HICP), prices in Austria rose by 3.2 percent in June, following 3 percent in May. Price increases for housing maintenance, insurance, and package tours—each with lower weightings in the HICP than in the CPI—dampened the HICP compared to the domestic Consumer Price Index (CPI). On the other hand, price increases for electricity and accommodation services (each with a higher weighting in the HICP than in the CPI) contributed to a higher HICP compared to the CPI.
This post has already been read 3 times!
