Austria’s inflation rate continued to decline in 2024, although still higher than in the previous year. According to the latest figures from Statistik Austria, the annual inflation rate in 2024 was 2.9%, a significant drop from the 7.8% recorded in 2023.
Throughout the year, a steady decline in inflation was observed, from 4.6% in January to 1.8% in September and October. The rate rose slightly to 2.0% in December. The decrease in energy prices for households contributed to the dampening of inflation, while service prices continued to rise.
The hospitality industry, for instance, recorded a lower price increase in 2024 compared to the previous year, but prices still rose by 7.0%, exceeding the overall inflation rate. Hotels increased their prices by 6.3%, while goods and services became 5.3% more expensive. Insurance premiums and personal care services saw the largest price increases, at 6.5% and 4.2%, respectively. In contrast, the cost of housing, water, and energy decreased by 2.2%, a significant drop from the previous year, particularly due to a 6.9% decline in household energy prices.
Austrian electricity prices rose by 1.2%, despite state measures such as the electricity price brake. The costs of maintaining homes increased by 4.3%, a notable moderation from the previous year. Rent, including new leases, rose by 6.7%. Food and non-alcoholic beverages became 2.6% more expensive, while transportation costs remained largely unchanged. Used cars, in particular, contributed to the decline, with prices falling by 5.0%, while new cars became 2.3% more expensive. At the pump, consumers could benefit from a 2.2% price drop.
Following the strongest price increases since the first oil price crisis in 1974, which were recorded in 2022 (8.6%) and 2023 (7.8%), the inflation rate in 2024 declined to 2.9%, roughly the same level as in 2021. This decline was more pronounced in Austria than in many other European Union countries.