Inflation in Austria dipped to 1.8% in September compared to the same month last year, marking the lowest rate in over three and a half years, according to the latest data from Statistics Austria.

The decline last month from 2.3% in August is primarily attributed to falling fuel and heating oil prices, which contributed to the overall reduction in inflation. Additionally, prices in the transportation sector saw a significant drop, with fuel costs decreasing by 13%.

Furthermore, Statistics Austria reported that the price of heating oil dropped by 17.4% in September compared to the same month last year, while gas prices fell by 25.7%. 

These declines significantly contributed to reducing inflation. 

In contrast, electricity prices experienced a notable increase, rising by 7.4% in September despite the mitigating effects of the electricity price brake and government subsidies.

While overall price increases have slowed, inflation in the country’s restaurant and hotel industry remained elevated, with a rate of 5.9% in September, making it a significant contributor to overall inflation. 

According to Statistics Austria, this sector was the largest driver of inflation. 

Additionally, food prices have recently risen again, particularly for meat and processed products. 

As a result, inflation is influenced by a mix of factors: while declining energy prices help to ease inflation, there is still considerable pressure in sectors such as hospitality and food.

Moreover, in September this year the consumer price index reached 123.6 points, indicating that consumer prices were 1.8% higher than in September 2023. Whereas compared to August 2024, the average price level decreased by 0.1%. The harmonised index of consumer prices (HICP 2015) also stood at 1.8%.