Inflation remains at 4 percent in November

Inflation in Austria is still almost twice as high as in the Eurozone. In November, prices in Austria were on average 4.0 percent higher than those in November 2024. Thus, inflation has remained unchanged for the third consecutive month, as Statistics Austria announced on Wednesday. The final figure was slightly lower than the preliminary estimate at the beginning of December. In the Eurozone, inflation remained at 2.1 percent according to the EU statistics office Eurostat.

Compared to October, the price level in Austria increased by an average of 0.3 percent according to Statistics Austria. The EU-wide harmonized CPI was also at 4.0 percent in November. Inflation was higher in November only in Estonia and Croatia. The ECB aims for a value of 2.0 percent for the 20-country community, which it considers optimal for the economy in the currency area. Economists unanimously expect that the monetary authorities will keep their key interest rate at two percent for the fourth consecutive time this Thursday.

According to statistics, household energy and services remained the strongest price drivers. Additionally, the price increase in November was particularly pronounced for fuels, explained Statistics Austria Director General Manuela Lenk.

Electricity prices rose particularly sharply

The area of housing, water, energy increased by 6.6 percent year-on-year (impact: +1.35 percentage points), remaining the largest driver of overall inflation. Household energy was again primarily responsible with an increase of 17.0 percent.

Electricity prices rose particularly sharply again (plus 41.4 percent; impact: +0.76 percentage points). Statistics Austria pointed to the expiration or elimination of several support measures at the beginning of the year, as well as higher network charges and levies, and the reintroduction of renewable energy subsidies. Heating oil became more expensive again after the decline in October (November: plus 4.2 percent), and solid fuels also increased more strongly (plus 3.5 percent).

Gastronomy remains expensive

Restaurants and hotels became 5.9 percent more expensive (impact: +0.79 percentage points), remaining just below October. Catering services increased by 6.0 percent, and accommodation services by 5.0 percent.

Food and non-alcoholic beverages increased on average by 3.6 percent (impact: +0.42 percentage points), which is less than in October. Food prices rose by 3.1 percent, non-alcoholic beverages by 6.8 percent. Coffee became significantly more expensive (plus 18.1 percent), while oils and fats (minus 12.3 percent) had a price-dampening effect. Vegetables became 0.8 percent cheaper.

Fuels Rise - Airfare Slows

In the transportation sector, prices rose by 2.6 percent (impact: +0.38 percentage points), slightly more than in October. The main factor was fuels (plus 2.5 percent). In contrast, the price pressure on airfare noticeably decreased (plus 1.3 percent after plus 6.1 percent in October).

The micro shopping basket (daily shopping) increased by 2.0 percent year-on-year. The mini shopping basket (weekly shopping, including fuels) rose by 3.1 percent - also less than the overall inflation.

ÖVP and Greens React

State Secretary for Finance Barbara Eibinger-Miedl (ÖVP) stated that the government's goal remains to reduce inflation to 2 percent. This requires "not only short-term effects but also structural measures that have a lasting impact." She referred to the "decisions of recent days - particularly the recovery package for reducing electricity costs."

The Greens blamed the governing parties ÖVP, SPÖ, and NEOS for the high inflation. "Those who increase fees and make public transport more expensive should not be surprised," said budget spokesperson Jakob Schwarz in a statement. Additionally, the governing parties allowed "all price-dampening measures of the previous government to expire on January 1, 2025."

(APA/Red)

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