The inflation rate in Austria for February, 2024 fell to 4.3 percent
As many people living in Vienna, Austria and in other areas of the Alpine country will tell you, inflation in Austria is too high.
After all, before government overreach during the Covid-19 fiasco caused inflation to become the highest the country had experienced since 1974, Austria had enjoyed an inflation rate hovering between 1.0 percent and 2.0 percent for much of the previous 10 years.
Come 2021, however, and almost a year into government overreach, and Austria’s inflation had climbed to 2.77 percent.
That rate of inflation then climbed throughout the rest of the year so that, by the time 2023 rolled around, inflation in Austria was rapidly getting out of control — clocking in during 2023 at a massive 8.55 percent.
That is an annual increase of 5.78 percent from the previous year.
Now, the inflation rate in Austria for February, 2024 is finally in at 4.3 percent compared to the same time last year and, while it has fallen quite a bit since then, it is still almost double what the European Central Bank says is a “stability target” of 2.0 percent.
Austria’s inflation rate in February, 2024 is also the fourth highest in Europe, only falling behind Romania, Croatia and Estonia.
And, with the overall European Union annual inflation at 2.8% in February, 2024, that means Austria’s inflation is still 1.5 percent above that.
What caused the inflation rate in Austria for February, 2024 to fall?
According to Tobias Thomas, the director general at Statistics Austria, the main thing keeping inflation down was that the price of food, as well as eating out in restaurants, has eased.
The cost of food “only” increased in February by 3.7 percent annually, while costs for eating out in a restaurant or expenses for a stay in an Austrian hotel “only” increased by 8.3 percent compared to 9.1 percent in January.
One of the things keeping inflation in Austria too high, however, is the cost of fuel, which did not decrease significantly in February.
As the price of fuel is connected to the price of almost everything else, if the Austrian government is not able to get that to drop quite significantly, the country’s stubborn problem with inflation is only likely to continue.
Inflation in Austria in February, 2024 by goods or services
Meanwhile, some of the examples of the amount of inflation Austrians are still paying when it comes to specific goods and services, compared to February, 2023 look like this:
- Food: + 3.2 percent
- Non-Alcoholic Beverages: +7.5 percent
- Restaurants: + 8.6 percent
- Hotels: +5.8 percent
- Housing: + 8.6 percent for rent
- Maintenance/repair of dwelling: +5.1 percent
- Electricity/gas/other fuel: – 3.7 percent
- Recreation/culture: + 5.0 percent
- Misc. goods/services: +5.9 percent
- Insurance: +7.7 percent
- Transport: +1.2 percent
Yes, Austria’s inflation in February, 2024 was too high and, if it is the same or close to it this month, it will be too high again.
Especially as most of the rest of the EU seem to be getting theirs under control.