A strong wave of inflation hits Austria, raising the prices of coffee and meat.
The inflation rate in Austria rose to 3.3% in June 2025, the highest level since May 2024, after being at 2.9% in May. While energy prices were the main reason previously, fuel and food prices have joined the list of main drivers of rising prices. The Director General of Statistics Austria, Thomas Borg, confirmed that electricity and restaurant prices have remained consistently high throughout the year.
The housing, water, and energy sector was again the main driver of inflation in June, with prices in this area rising by 5.2% compared to last year, after being 5% in May. The main reason for this was the increase in household energy prices, which jumped by 9.6%, while the pace of decline in heating oil prices slowed, reducing the impact of the decline.
Prices of solid fuels such as firewood and coal saw a less severe decline of 4.4%, down from 7.8% in the previous month. Electricity remained one of the biggest contributors to inflation, with an annual increase of 35.7%, due to the cancellation of support measures such as electricity price reductions, network cost assistance, and support for large families. In contrast, gas continued to ease inflation with a decrease of 9.1%, while central heating prices remained almost stable. Rent increased by 3.9%, with a slight slowdown compared to May, while home maintenance costs rose by 2.8%. The food and restaurant sector significantly contributed to inflation. Restaurant and hotel prices rose by 5.5%, and hotel services saw a noticeable increase from 3.9% in May to 5.5% in June.
Food and non-alcoholic beverage prices increased by 4.7%, compared to 3.5% in May. The main reason was the rise in food prices by 3.8%. Meat saw a significant jump of 4.8% compared to 2.2% in May. Basic products also saw price increases: Milk, cheese, and eggs by 5.2% Fruits by 5.5% Bread and cereals by 2.2% Oils and fats by 1.5% Vegetables by 2.6%
In the non-alcoholic beverage sector, prices continued to rise by 12%, especially coffee, which increased by 26.8% after having risen by 22.3% in May, making the morning cup of coffee an expensive luxury. In contrast, the prices of soft drinks remained almost stable after rising by 5.1% in May.