In 2023, the inflation rate in Austria was 7.8%.

According to the report from Statistics Austria, the annual average inflation rate of the Consumer Price Index (CPI 2020) was 7.8% in Austria in 2023, compared to 8.6% in 2022. A similarly high inflation rate was last recorded in 1974 (9.5%) and 1975 (8.4%). The annual average inflation rate for the Harmonized Index of Consumer Prices (HICP 2015) was 7.7% in 2023, down from 8.6% in 2022.

Nearly Four Times the ECB’s Target

“The 7.8% inflation in 2023 is still nearly four times the European Central Bank’s (ECB) 2% target. Compared to the previous year, when inflation reached its highest level since the 1974 oil crisis at 8.6%, a slight decrease was observed in Austria. The inflation decline in 2023 was even more pronounced in other Eurozone countries. More than half of the inflation in 2023 was driven by significant increases in hospitality services, food, housing maintenance and repair, and household energy prices. In contrast, lower fuel prices helped moderate the rise in prices and significantly contributed to the annual decrease in inflation,” said Tobias Thomas, Director General of Statistics Austria.

The most significant price driver was the increase in costs for housing, water, and energy (+11.1% compared to 2022; maintenance and repair of the dwelling +12.6%, electricity, gas, and other fuels +16.5%, including gas +55.2%, district heating +50.5%, solid fuels +8.9%, electricity −2.5%, heating oil −14.0%). This was followed by restaurants and hotels (+12.2%; restaurants +12.2%, hotels +12.9%). Food and non-alcoholic beverages (+11.0%; food +10.8%, non-alcoholic beverages +12.6%) ranked third. The fourth most significant driver was leisure and culture (+7.3%; other recreational items, equipment, gardens, and pets +8.3%, recreational and cultural services +5.5%, package holidays +10.0%). Transportation prices grew well below average (+1.7%; cars +7.0%, fuels −8.7%).