Austria’s Cost of Living Rises Over the Past Five Years

Austria’s Cost of Living Rises Over the Past Five Years

Image: APA/GEORG HOCHMUTH

 

A recent study by the Momentum Institute, which works closely with trade unions and workers’ organisations, shows that the cost of living in Austria has risen sharply over the past five years.

By the end of 2024, the average Austrian household needed an extra €458 per month to maintain the same standard of living as in 2019.

Monthly costs for food increased by €66, while housing and energy costs rose by €83. Spending on dining out and hospitality added €128, with an extra €14 going on fuel. Another €167 was spent on other expenses, including healthcare, leisure, culture and education.

Looking ahead to 2025, the institute has warned that further price rises could make life even more expensive.

Diesel Still Costs More Than Petrol

Meanwhile, the motoring club ÖAMTC has reported that petrol prices in Austria dropped by about 1% (two cents) compared to last year, while diesel became roughly 3% cheaper (four cents). Despite the decline, diesel remained more expensive than petrol throughout the year, averaging €1.596 per litre compared to €1.569 for petrol. This marks the third year in a row that diesel has cost more than petrol.

Around one in five newly registered cars in Austria is diesel-powered or a diesel hybrid. However, nearly half of all car owners in the country still use diesel fuel.

Higher CO2 Costs Expected in 2025

Drivers are set to face higher costs in 2025. From January, Austria’s national CO2 levy will rise from €45 to €55 per tonne of CO2, adding around three cents per litre at the pump. Diesel, due to its higher carbon content, will be hit harder. CO2 charges, including VAT, will account for 15 cents per litre of petrol and 16.5 cents per litre of diesel next year.

The overall impact on consumers will depend on the future of the Klimabonus, or climate bonus, a payment meant to offset costs from climate measures. With the government under pressure to reduce public spending, economists have suggested scrapping the bonus to help balance the budget.

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