Austria's inflation climbs in August, driven by services and fuel costs

Statistics Austria reported that consumer price inflation in Austria rose in August, with fuel and heating oil price hikes contributing significantly to the increase. Despite this, the services sector continued to be the main driver of inflationary pressure. The recent cut in the value-added tax on staple foods, which took effect in July and lowered the rate from 10 % to 4.9 %, provided a mitigating effect on the overall price rise.

Manuela Lenk, director general of Statistik Austria, emphasized that food costs remained below the level seen a year prior. The agency confirmed that the August inflation figure aligns with its early September estimate. While transport costs have become a more prominent factor year-on-year, the latest fuel price spikes have not yet been fully reflected in the August data.