So high does Raiffeisen Research estimate the average annual inflation

Inflation in Austria is expected to rise to an average of 3.5 percent for the year, according to estimates from Raiffeisen Research. This would mean that the inflation rate in Austria would be significantly above the European average, which economists estimate at an average of 2.3 percent for the Eurozone. Even in 2026, inflation is expected to be higher than the Eurozone average at 2.5 percent, according to a release on Friday.

"A Problem of Stronger Rising Service Prices"

Matthias Reith, Raiffeisen Research economist, sees services as the main driver of inflation. "The long-standing inflation problem in Austria is essentially a problem of stronger rising service prices," said Reith. The main price driver in services is the gastronomy sector. Since 2019, gastronomy prices in Austria have risen by 46 percent according to analysis, compared to 27 percent in the Eurozone.

Inflation Climbed to Highest Level in a Long Time

In August, inflation rose to 4.1 percent according to a quick estimate by Statistics Austria, the highest level since March 2024. The biggest influence on inflation in August was once again services, which increased by 4.7 percent. The Harmonized Consumer Price Index (HCPI) was at 4.1 percent, significantly above the inflation rate of 2.1 percent in the Eurozone.

(APA/Red)

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