Austria’s annual inflation rate eased to 2% in January 2026, down from 3.8% in December, in line with preliminary estimates. This was the lowest rate since December 2024 and was largely attributable to declining electricity prices, which shaved roughly one percentage point off the headline figure due to base effects and the reduction in electricity taxes introduced in January.
Overall, prices for electricity, gas and other fuels fell by 3.9% year on year. Within this category, electricity prices dropped by 8.2%, prices for liquid fuels declined by 9.4%, and gas prices were down 1.1%.
By contrast, notable price increases were recorded in several categories, including food and non-alcoholic beverages (up 2.6%), transport (up 0.2%), restaurants and accommodation services (up 4.9%), and personal care, social protection, and miscellaneous goods and services (up 4.3%).
On a monthly basis, consumer prices fell by 0.7% in January, marking the first decline in four months and the sharpest monthly drop since January 2019. The harmonised index of consumer prices (HICP) likewise slowed to 2% in January, from 3.8% in December 2025.
