Inflation Rises to 3.3% in January

Inflation Rises to 3.3% in January

Image: APA/BARBARA GINDL

 

In January 2025, prices in Austria rose by 3.3% compared to the previous year, according to preliminary data from Statistik Austria. Month-on-month, prices increased by 1.1% compared to December 2024.

The main contributors to inflation were the services sector, which saw an increase of 4.7%, and energy, which went up by 3.7%. In contrast, the price rise for industrial goods was more modest, at just 0.9%, helping to moderate inflation overall.

The rise in energy prices had been expected.

“The jump to 3.3% from 2.0% in December 2024 is due to price-dampening measures, such as the electricity price cap no longer being effective from January 2025, network fees automatically rising, and the CO2 tax being increased,” explained Tobias Thomas, Director-General of Statistik Austria. He also pointed out that the significant share of labour costs made the services sector the biggest driver of inflation.

Prices for food, tobacco, and alcohol rose by a more moderate 2.7%. Meanwhile, industrial goods saw a smaller year-on-year increase of 0.9%.

The EU-comparable harmonised consumer price index rose by 3.5% in January and by 0.9% compared to the previous month. However, Thomas noted, “A decrease in inflation rates is expected later in the year.”

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