Inflation in Austria flattened significantly at the beginning of the year and was only 0.8 percent in January. In December 2020, inflation was 1.2 percent. The main reason for the decline was lower food prices. “We last had inflation rates of less than 1 percent in May 2020 and for several months in 2015 and 2016,” said Statistics Austria Director General Tobias Thomas.
Without expensive housing, inflation would have been only 0.4 percent. The prices for apartments, water and energy rose by an average of 2.1 percent and thus proved to be the strongest price drivers year-on-year. Rents increased by an average of 5.4 percent.
Food and non-alcoholic beverages, on the other hand, were 1.1 percent cheaper on average and thus had a significant impact on inflation. Meat, bread, milk, cheese and eggs as well as vegetables became cheaper.
The harmonized inflation rate (HICP) for Austria determined for euro zone comparisons was 1.0 percent.