Austria's inflation rate jumped to 3.2% in January 2025, up from 2% in December 2024. The sharp rise was driven by the end of government measures to curb electricity prices, along with increased grid fees for electricity and gas, and higher renewable energy and CO2 taxes.

Housing, water, and energy costs surged by 4.4%, becoming the main inflation drivers.

Restaurants and hotels saw a 5.6% price hike, while food and non-alcoholic beverages rose by 2.1%.

Daily essentials, tracked by the "microwarenkorb," increased by 3.7% compared to the previous year.

The overall cost of living in Austria has risen significantly, impacting households nationwide.