Austria inflation falls to 2 pct in January

Alsharq Tribune-M.Essam 

Austria saw a lower inflation rate in January, with falling energy prices dampening overall price pressures, official data showed on Wednesday.

According to a flash estimate by Statistics Austria, the inflation rate in January is estimated at 2 percent, down from 3.8 percent in December.

"Following the high inflation rates of 2025, inflation in Austria will fall back to the levels seen in the second half of 2024," said Manuela Lenk, director general statistics at Statistics Austria.

The decisive factors for the lower inflation compared to 2025 were the end of the base effect for electricity and price declines for energy, including electricity, gas, heating oil and fuels. Energy prices dropped by 4.9 percent year on year in January, according to Statistics Austria.

Services remained the biggest price driver, with service prices rising 3.8 percent year on year in January. Meanwhile, prices for food, tobacco and alcohol increased by 2.7 percent year on year.