Fell to 3.2 percent

Inflation in June: Price Pressure Finally Eases

Food prices did not rise quite as sharply in June.(Bild: Drazen – stock.adobe.com)

According to data from Statistics Austria, inflation in Austria fell to 3.2 percent in June. In May, the inflation rate had stood at 3.7 percent. 

This confirmed the flash estimate for June. “The key factor behind the easing of price pressures was the significantly lower price increase for fuels and heating oil,” said Statistik Austria Director General Manuela Lenk. Food prices also rose at a slower pace.

Overall, transportation (up 6.5 percent) remained the strongest driver of inflation in June, but inflation for fuels eased significantly: In June, fuel prices rose by only 16.3 percent, after having increased by 26.5 percent in May. Airfare, on the other hand, continued to rise, becoming 22.4 percent more expensive in June. In May, the increase was 13.8 percent.

Less price pressure on heating oil; electricity became cheaper
Price pressure on heating oil eased noticeably; prices rose by 32.6 percent in June, following a 53.7 percent increase in May. This also helped bring down prices for household energy, which fell by 0.4 percent overall. Electricity, in particular, acted as an inflation dampener in June, with prices falling by 10.2 percent. The reductions in the electricity levy and the renewable energy subsidy, effective starting in January 2026, would continue to have a price-dampening effect here, according to Statistics Austria. The introduction of a social rate for households exempt from the ORF license fee, as well as the introduction of the summer grid rate—which provides for a reduced grid fee during midday hours through the end of September—also had additional price-dampening effects.

  Gas, meanwhile, became 4.6 percent more expensive, district heating rose by 1.9 percent, and solid fuels increased by 11.1 percent. Overall, prices for housing, water, electricity, gas, and other fuels rose by 3.0 percent.

Services Saw Above-Average Price Increases
Prices for services rose at an above-average rate in June. For example, food service and lodging prices rose by 4.5 percent in June. Prices for inpatient health care services increased by 4.9 percent, while those for outpatient health care services rose by 7.4 percent.

Food and non-alcoholic beverages became 1.3 percent more expensive, a smaller increase than in May (2.2 percent). Meat prices rose by 2.6 percent, grains and grain products by 2.2 percent, fruit by 2.9 percent, and milk and eggs by 1.5 percent. Non-alcoholic beverages became 0.3 percent cheaper—a trend driven by lower coffee prices (down 0.5 percent).

Prices for Daily Groceries Remain Stable
Prices for daily groceries, as reflected by the micro-shopping basket, remained stable year-over-year in June. The micro-shopping basket primarily contains food items, but also includes daily newspapers and coffee at a coffeehouse. By contrast, the price level of the mini-basket—which reflects a weekly shopping trip and includes not only food and services but also fuel—rose by 3.7 percent year-over-year. The Harmonized Index of Consumer Prices (HICP), standardized at the European level, stood at 3.2 percent in June.