Austria’s Inflation Holds Firm at 4%, Energy Costs Drive Renewed Pressure
VIENNA — Austria’s inflation rate held steady in October at 4.0 percent year over year, unchanged from September, according to a flash estimate from Statistics Austria, according to “KURIER”. Consumer prices rose 0.4 percent from the previous month, keeping Austria’s inflation well above the European Central Bank’s 2 percent target and the eurozone average.
Energy once again fueled the surge. Prices in the services sector climbed 4.6 percent annually, while inflation for industrial goods eased slightly to 1.3 percent from 1.4 percent. Food, alcohol, and tobacco rose 3.9 percent, up marginally from 3.8 percent in September.
Energy costs soared 9.7 percent from a year earlier, with electricity and gas prices showing sharp increases. “Energy remains one of the main drivers of overall inflation,” said Statistics Austria’s Director-General Manuela Lenk.
Core inflation, which excludes energy and food, edged down to 3.4 percent from 3.5 percent, signaling only a slow cooling of domestic price pressures. Real purchasing power continued to weaken, and the harmonized EU index (HICP) showed the same 4.0 percent annual rise, up 0.5 percent month over month. Full inflation data will be released on November 19, 2025.
Across the eurozone, inflation eased to 2.1 percent in October, down from 2.2 percent the month before, according to Eurostat. The European Central Bank kept its key interest rate unchanged at 2.0 percent during its meeting in Florence, marking a third consecutive hold after eight rate cuts between mid-2024 and mid 2025.
ECB President Christine Lagarde said policymakers were “in a good position,” though insiders suggest that a rate cut could resurface in December talks. The ECB’s upcoming projections, extending through 2028, may reignite debate if inflation is seen undershooting the 2 percent goal for several years.
For now, Austria’s stubbornly high inflation stands as a sharp contrast to the cooling trend across much of Europe; a reminder that, despite easing pressures elsewhere, energy remains a volatile force.
