FX.co ★ Austria Producer Deflation Deepens

In December 2025, Austria experienced a 1.9% year-on-year decline in producer prices, worsening from a 1.3% drop in November. This reduction signifies the ninth consecutive month of decreasing prices and marks the most significant decline since November of the previous year. This trend primarily resulted from an accelerated decrease in energy costs, which plummeted by 6.9%, compared to a 5.2% drop in November. Additionally, prices for intermediate goods fell by 0.4%, slightly more than the 0.3% decline in the previous month. Meanwhile, the price growth for capital goods remained stable at 0.3%, and consumer goods prices saw an increase of 1.3%, up from 1.1% in November. On a month-to-month basis, producer prices decreased by 0.3% in December, reversing from a 0.3% rise in the previous period. The overall decline was largely due to reduced costs in the electricity, gas, steam, and air conditioning supply sector (-0.9%) and in the manufacturing of chemicals and chemical products (-1.5%). These decreases were somewhat counterbalanced by a 1.0% increase in the manufacture of basic metals.