FX.co ★ Austria Inflation at 13-Month Low

In January 2026, Austria's annual inflation rate decreased to 2%, down from 3.8% the previous month, reaching its lowest point since December 2024. This reduction was primarily influenced by a significant 4.9% drop in energy prices. This decrease occurred as the effects of the electricity price cap diminished, energy taxes were lowered, and renewable energy subsidies were scaled back. The increase in industrial goods prices was modest at 0.8%, while inflation for services and food, tobacco, and alcohol slowed to 3.8% and 2.7%, respectively. Manuela Lenk, Director General of Statistics Austria, stated, "After the high inflation rates experienced in 2025, Austria's inflation is expected to return to the levels observed in the latter half of 2024. The prices of electricity, gas, heating oil, fuel, and industrial goods exerted a moderating influence." On a month-over-month basis, consumer prices fell by 0.7% in January, marking the first decline in four months and the steepest drop since January 2019, following a 0.3% increase in the prior period.