This means that the Austrian rate was once again higher than the Eurozone average, which saw an increase of 2.4 percent. The main price drivers compared to February 2024 in Austria were services, which increased by 4.5 percent. Since their share of the consumer price index is almost half, they pushed inflation up by 2.165 percentage points.

The increase in prices in this country was also driven by significantly higher energy prices, as reported by Statistics Austria in a quick estimate on Monday. On one hand, the electricity price brake was no longer in effect, and on the other hand, network fees and the CO2 tax increased. As a result, prices here rose by 3.4 percent year-on-year, while energy costs in the Eurozone increased only slightly according to the harmonized standard.

Prices for Industrial Goods 1.3 Percent Higher

Price increases for food and other goods were below the inflation rate. The price increase for food, tobacco, and alcohol was significantly below the general inflation rate at 2.8 percent. Industrial goods dampened the inflation rate with an increase of only 1.3 percent.

The harmonized consumer price index (HCPI) according to European standards shows an inflation of 3.5 percent year-on-year for February and 0.6 percent compared to the previous month. The situation looks significantly better for the Eurozone: According to Eurostat estimates, prices in the Eurozone rose by an average of 2.4 percent, down from 2.5 percent the previous month. The lowest inflation rates compared to the previous year are estimated for France (0.9 percent), Ireland (1.3 percent), and Finland (1.5 percent). The highest rates are reported for Estonia (5.0 percent), Croatia (4.7 percent), and Belgium (4.4 percent). Germany's rate is expected to remain at the January level of 2.8 percent.

Services as Price Drivers

As in Austria, services were also the biggest price drivers in the Eurozone in February: they increased by 3.7 percent. Consumers had to pay an average of 2.7 percent more for food, alcohol, and tobacco, while energy prices in the Eurozone average increased by only 0.2 percent.

The next interest rate decision by the European Central Bank is scheduled for Thursday. It could use the slightly declining inflation rate as an argument to lower interest rates again - for the sixth time in a row. It is expected that the deposit rate, which is significant for banks and savers, will be reduced by a quarter percentage point to 2.5 percent.

(APA/Red)

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