According to Statistics Austria, inflation rose to 4.1 percent in August, up from 3.6 percent in July. “The inflation rate was last this high in March 2024,” confirmed Statistics Austria Director General Manuela Lenk on Wednesday, validating the figures already anticipated in the flash estimate. “In many areas, price pressures have intensified.” The strongest price drivers are currently restaurants, electricity, and food.
Without these three areas, the inflation rate would have been only 2.2 percent. Compared to July, the overall price level increased by 0.2 percent.
The category of housing, water, and energy recorded the strongest price increases at +6.1 percent. Electricity prices were the main factor, rising 37.2 percent year-on-year—a result attributed to the end of the government electricity price cap as well as higher grid fees and surcharges. District heating also became more expensive (+1.2 percent). In contrast, prices for heating oil (-4.1 percent), solid fuels (-3.7 percent), and gas (-2.8 percent) continued to have a dampening effect. Rents also rose more sharply than in July, up 4.4 percent.
In restaurants and hotels, prices rose by 6.1 percent, more strongly than in the previous month. Catering services saw particularly sharp increases (+6.1 percent), while the rise in accommodation costs eased slightly to 5.6 percent. Food and non-alcoholic beverages became 5.2 percent more expensive on average. The most notable increases were in meat (+6.2 percent) and dairy, cheese, and eggs (+7.5 percent). Bread and cereals rose by 3.1 percent, vegetables by 2.4 percent. Coffee prices rose by 23.8 percent year-on-year.
In the transport sector, prices also rose more strongly, averaging +1.2 percent after just +0.3 percent in July. Used cars became 7.1 percent more expensive, airline tickets 3.6 percent. At the same time, the decline in fuel prices (-3.2 percent) was less dampening than the previous month. Clothing and footwear recorded a 4.5 percent increase, an effect Statistics Austria attributes to improved measurement of seasonal patterns through scanner data.
Core inflation—excluding energy and unprocessed food—stood at 3.8 percent in August. The EU-harmonized consumer price index (HICP) also reached 4.1 percent, an increase of 0.3 percent compared to July.
In everyday life, the price pressure remained noticeable: the “micro basket” of goods for daily shopping rose by 4.7 percent year-on-year, while the “mini basket” for weekly shopping increased only 3.4 percent.
The Momentum Institute, which is close to trade unions, argued that inflation could be reduced to 0 percent by the end of the year. To achieve this, it recommended cutting VAT on all food and applying political pressure on food corporations to halve the “Austria surcharge.” It also called for price regulation of rents and energy.
