Inflation in Austria: Electricity prices are driving up inflation

The Annual inflation 2025 was included 3.6 percent and therefore significantly higher than inflation in 2024 at 2.9 percent. Inflation in the previous year was driven in particular by higher electricity prices due to the end of the electricity price brake. While price pressure increased for food, according to Statistics Austria, price increases in the catering industry were less pronounced than in the previous year, but remained at a high level.

Inflation in Austria was again significantly higher last year than in almost all countries in the Eurozone. Over the course of 2025, inflation fell from 3.2 percent in January to 2.9 percent in May, rose to 4.1 percent in August and only fell below the 4.0 percent mark again in December at 3.8 percent, as Statistics Austria announced on Monday.

Housing, water and energy as price drivers

The price increases for housing, water and energy fueled inflation the most in 2025. Inflation in this area amounted to 5.7 percent, almost three times as high as in 2024 at 2.2 percent. Electricity (total costs/year) increased by 37.3 percent compared to 2024 and apartment rents (all categories) rose by 4.2 percent. Prices in restaurants and hotels rose less sharply in the previous year at 5.8 percent than in 2024 at 7.0 percent. At 3.7 percent, inflation for food and non-alcoholic beverages was significantly higher in 2025 than in the previous year at 2.6 percent.

In the previous year, the price declines for diesel fuel (−3.8 percent), premium gasoline (−3.2 percent) and extra light heating oil (−5.2 percent) had a dampening effect on inflation. Statistics Austria also registered lower prices for mobile phones (−12.7 percent) and e-bikes (−10.1 percent).

Inflation in December at 3.8 percent

After the phase of high inflation in 2022 to 2024, annual inflation in 2025 is the highest since 1993. For comparison: in 2023, inflation was 7.8 percent.

In December, inflation was 3.8 percent. Inflation was below 4.0 percent for the first time since July. Lower fuel prices had a dampening effect compared to the same month last year. The strongest price drivers in December continued to be electricity and services. But food prices also rose noticeably.