FX.co ★ Austria Inflation Rises To 8-Month High

Austria experienced a further increase in consumer price inflation in January, reaching its highest level in eight months, according to preliminary data released by Statistics Austria on Monday.

The consumer price index saw a year-on-year rise of 3.3% in January, accelerating from a 2.0% increase in December. This marks the most significant inflation rate since May 2024, when prices had also grown by 3.3%.

Consequently, the current inflation rate significantly surpasses the European Central Bank's target of maintaining price stability at 2.0%.

The rise in inflation is largely attributed to the cessation of price-reducing policies, such as the electricity price cap, since January 2025. Additionally, automatic increases in network charges and a hike in the CO2 tax have contributed to the upward trend, as noted by the agency.

Energy prices in January were 3.7% higher compared to the previous year, reversing their previous moderating influence. The most substantial contributor to the rising prices was the service sector, which, due to high wage costs, saw a 4.7% increase year-on-year.

On a monthly scale, consumer prices increased by 1.1%.

Moreover, the Harmonized Index of Consumer Prices (HICP), the European Union's measure for inflation, surged by 3.5% compared to a 2.1% uptick in December. Month-on-month, the HICP climbed by 0.9%.