Wave of inflation in Austria: This is how electricity and food prices explode!

Wave of inflation in Austria: This is how electricity and food prices explode!

The economic situation in Austria dramatically deteriorated in January 2025. In particular, the costs for electricity, gas and food have experienced a steep increase that heats up inflation. According to statistics Austria, the consumer price index (VPI) climbed to 126.4 points, which corresponds to an increase of 3.2 percent compared to the previous year. As early as December 2024, the increase was 1.0 percent in the month comparison. This inflation hits households particularly hard, especially in terms of energy costs.

electricity prices explode

After the suspension of the electricity price brake, electricity prices shot up by astonishing 35.3 percent in the year. Compared to the previous month of December, the prices even rose by alarming 45.4 percent due to higher network charges and the reintroduction of funding contributions for renewable energies. There is also hardly any relief for gas costs: Although prices have fallen by 21.7 percent compared to the previous year, higher network charges and new CO₂ taxes dampen the positive effect.

Another burden on household budgets is the greatly increased food prices. While the price increases were moderate in December, prices in January rose by a remarkable 2.1 percent. Meat (plus 2.3 percent), oils and fats (plus 11.1 percent) and fruit (plus 4.2 percent) are particularly affected. Restaurant visits also became more expensive, and prices in the catering trade were 5.9 percent higher. A little ray of hope: 3.3 percent cheaper, but the average purchase remains a challenge for many households, as well as Destatis.de

Rents continued and increased by 4.1 percent in January. This is easy relief compared to December 2024, as this increase was 4.3 percent before. This development explains the inflation rate of 3.2 percent in January, which is primarily heated by the exploding energy costs and increasing food prices. Without the influences of extreme electricity prices, however, the inflation would only be 2.4 percent, which again shows how strongly the current prices put pressure on the cost of living, so 5min.at .