Inflation in Austria at its Lowest Level Since 2021
Inflation in Austria fell to 1.8 percent in September compared to the same month last year. This was the lowest figure for a good three and a half years, according to Statistics Austria.
Fuel and heating oil in particular had a dampening effect on prices. Gastronomy remains the most significant driver of inflation. / Picture: © Wikimedia Commons; Ralhof, CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0/deed.en)
In September 2024, inflation in Austria fell to 1.8 percent, the lowest level since February 2021. This marks a significant decline compared to the 2.3 percent recorded in August. The main reason for this development is the fall in fuel and heating oil prices, which had a dampening effect on inflation overall, according to Statistics Austria. Prices fell sharply in the transportation sector, where fuels became 13 percent cheaper.
Cheaper energy prices are the main factor
According to Statistics Austria, the price of heating oil fell by 17.4 percent in September compared to the same month last year. Gas prices also fell by 25.7 percent. These price developments made a significant contribution to curbing inflation. In contrast, however, electricity prices rose noticeably. Despite the dampening effect of the electricity price brake and government subsidies, they rose 7.4% in September.
Price drivers: restaurants and hotels
While general price increases declined, inflation in the restaurant and hotel industry remained high. The inflation rate for restaurants and hotels was 5.9% in September, which had a significant impact on overall inflation. According to Statistics Austria, this sector was the biggest driver of inflation. Food prices have also risen again recently, particularly for meat and processed products.
Inflation is therefore influenced by various factors: while falling energy prices have a dampening effect, pressure remains in areas such as gastronomy and food.