VIENNA: Austria’s annual inflation eased to a 13-month low in January 2026, as a sharp drop in electricity prices helped pull overall consumer price growth back toward levels last seen in late 2024. Statistics Austria confirmed the consumer price index rose 2.0% from a year earlier, down from 3.8% in December 2025. The harmonised index of consumer prices, used for comparisons across the European Union, also rose 2.0% year on year in January.
Prices fell 0.7% from December on a month-to-month basis, reflecting broad declines tied to household energy and fuel costs at the start of the year. Statistics Austria attributed a large part of the slowdown to electricity, pointing to a shift in the annual comparison after the end of a prior electricity price cap and to lower electricity taxes that took effect in January 2026. The January reading marked a notable cooling from late 2025, when several services categories were still rising briskly.
Electricity prices were down 8.2% from a year earlier, a move the statistics office said reduced the overall inflation rate by around one percentage point. Within the housing, water, electricity, gas and other fuels category, prices increased 1.2% year on year, while the subcategory covering electricity, gas and other fuels fell 3.9%. Gas prices declined 1.1% and liquid fuels dropped 9.4% compared with January 2025, underscoring the role of energy in the month’s disinflation.
Energy and household costs
Energy effects extended beyond household bills. The transport category rose 0.2% from a year earlier, as cheaper fuels helped offset gains elsewhere. Fuels and lubricants for personal transport equipment fell 6.5% year on year, easing pressure on travel-related costs, even as some components such as second-hand cars rose 5.8%. Clothing and footwear prices fell 1.6%, adding to the downshift in headline inflation, while several other goods categories posted modest increases.
Services remained a key source of price growth, particularly in areas tied to leisure and tourism. Restaurants and hotels rose 4.9% from a year earlier, with restaurant services up 4.7% and accommodation services up 5.8%. Miscellaneous goods and services climbed 4.3%, including higher prices for personal care and insurance-related items. Food and non-alcoholic beverages increased 2.6% year on year, keeping everyday grocery costs on an upward track even as energy-related items declined.
Rebased index and EU comparison
Statistics Austria reported January’s figures using a new base year of 2025 and an updated classification framework aligned with current European standards, changes that can affect how some groupings are mapped over time. The office said the harmonised index provides a comparable measure across EU member states, while the national consumer price index remains the primary gauge for domestic inflation. In euro area terms, January inflation was reported at 1.7%, placing Austria’s harmonised rate above the currency bloc average for the month.
The confirmation of a 2.0% annual rate in January follows the office’s earlier estimate and sets inflation at its lowest level since December 2024, when it last matched the same pace. Statistics Austria said electricity’s year-on-year decline and lower energy-related charges were central to the January outcome, while services inflation continued to keep the overall index elevated. The consumer price index and the harmonised measure are calculated from a broad basket of goods and services reflecting household spending patterns. – By Content Syndication Services.