Inflation in Austria falls to 3.2 percent in June

The largest contribution to overall inflation in June once again came from service prices. These rose again at an above-average rate, increasing by 4.4 percent as in the previous month. „Den Hauptbeitrag zur Gesamtinflation lieferten nach wie vor die Dienstleistungspreise, die im Juni erneut überdurchschnittlich gestiegen sind“, reads the Statistik Austria statement.

Health services rose particularly sharply, gaining 4.9 percent year-on-year. Restaurant and accommodation services cost 4.5 percent more in June than a year earlier. Package holidays even rose by an average of 10.1 percent compared with May and were thus the biggest price driver relative to the previous month.

Flights and travel disproportionately more expensive

The data also show a marked increase in air travel. Year-on-year, flights in Austria surged by almost 14 percent compared with the same month a year earlier. Popular European routes rose by as much as 11.5 percent. According to data from the global aviation industry umbrella body IATA, fuel prices are currently on average 41 percent above the previous year's average, with business tickets in some cases costing 40 percent more than before the Middle East war.

The price level of daily purchases, the so-called micro basket, also remained unchanged in June compared with the same month last year. The mini basket, which reflects weekly purchases including food, services, and fuel, rose by 3.7 percent year-on-year.

Inflation above the eurozone average

The European Central Bank (ECB) raised its key interest rate by a quarter of a percentage point to 2.25 percent in June in order to further curb inflation. The eurozone as a whole recorded a decline in the inflation rate from 3.2 to 2.8 percent in June. This means that inflation in Austria has been consistently above the eurozone average since January 2025.

The average price level in Austria remained overall unchanged in June 2026 compared with May 2026. For the first half of 2026, the Federal Statistical Office most recently reported an average price increase of 8.5 percent.

Domestic inflation therefore remains a central issue for the economy and households. While energy and food prices are rising somewhat less sharply, higher service costs are keeping overall inflation in Austria above the level of other European countries.

Impact on consumers and aviation

Consumers in Austria are feeling the effects directly. Those booking flight tickets without baggage from a German airport, for example, pay on average between 81 and 141 euros per route. A year ago, this range was between 67 and 130 euros. The four largest direct-flight carriers are also far removed from earlier entry-level prices such as 9.90 or 19.90 euros in their day-to-day business.

Ryanair boss Michael O'Leary, who has repeatedly criticised the high location costs in Vienna and Austrian aviation policy, has since reduced his fleet at Vienna-Schwechat Airport. Industry representatives such as Air France-KLM manager Guido Hackl pointed out that fuel used to account for around 25 percent of an airline's costs before the crisis, but now accounts for about 40 to 45 percent.

Overall, the data confirm a trend of slow easing in the price components of energy and food, while structural areas such as healthcare, gastronomy, and travel continue to generate elevated price pressure. The coming months will show whether this development consolidates or whether the gathering domestic economy again slows the disinflation process.

For economic policy, the large gap to the eurozone average remains a warning signal. The ECB has sent a signal with its recent key interest rate hike, but as long as services rise by more than four percent, the fight against inflation in Austria remains an unfinished task.