Austria’s inflation rate rose to 3.3% in February, up from 3.2% at the beginning of the year. Compared to January, prices increased by 0.6%, according to a flash estimate released by Statistics Austria on Monday. The main driver of inflation compared to February 2024 was a 4.5% rise in services. With their share accounting for nearly half of the consumer price index, services contributed 2.165 percentage points to the inflation increase.

Inflation was also driven by significantly higher energy prices. On one hand, the electricity price cap was lifted, and on the other hand, network fees and the CO2 tax rose. As a result, prices in this category increased by 3.4% year-on-year.

Prices for Industrial Goods Rise by 1.3%

The price increases for food and other goods were below the inflation rate. The price increase for food, tobacco, and alcohol was 2.8%, significantly lower than the overall inflation rate. Industrial goods helped mitigate inflation, rising by just 1.3%.

The European standard harmonized consumer price index (HICP) shows an inflation rate of 3.5% in February compared to the same month last year, and an increase of 0.6% compared to the previous month.