Austria's inflation rate has shown signs of easing, dropping to 2.0% in December 2024. However, experts warn that the removal of government measures like the electricity price cap could push inflation back up to 2.5-2.75% in early 2025. Rising costs in services, such as hospitality and insurance, continue to drive price increases, while energy prices have seen a temporary decline.

Meanwhile, the cost of basic goods like food remains a contentious issue, with some items seeing sharp price hikes.

Internationally, Austria's inflation rate remains slightly above the Eurozone average, reflecting the challenges of balancing economic recovery with cost-of-living pressures.

Economists predict a gradual decline in inflation later in 2025, offering cautious optimism for consumers.