VIENNA: Austria’s annual inflation rate rose to 3.1% in March from 2.2% in February, according to a flash estimate released by Statistics Austria, marking a 0.9 percentage point increase in the headline reading. Consumer prices also rose 1.1% from the previous month. The statistics office said the jump in the annual rate was almost entirely linked to higher prices for fuels and heating oil, which reversed the declines recorded in the energy component earlier this year.
Energy prices rose 6.1% year on year in March after falling 4.1% in February, producing the sharpest shift among the main components of the index. Services remained the largest underlying contributor to inflation, with prices in that category increasing 4.5% after a 4.0% rise a month earlier. The March estimate therefore combined a strong rebound in energy costs with continued services inflation, pushing the overall reading back to levels seen in the first half of 2025.
Statistics Austria’s breakdown showed core inflation, which excludes energy and the broader food, alcohol and tobacco aggregate, at 3.0% in March. Food, alcohol and tobacco prices were up 2.4% from a year earlier, while industrial goods rose 0.5%. In contribution terms, services added just over two percentage points to the headline rate, while energy added nearly half a percentage point, underscoring how the March increase was driven by both persistent services costs and a turn in fuel-related prices.
Energy rebound lifts headline rate
Austria’s harmonised index of consumer prices, the measure used for euro area comparisons, also rose 3.1% year on year in March and increased 1.1% from the previous month. That left Austria above the euro area flash inflation estimate of 2.5% for March. Eurostat said energy posted the highest annual increase across the euro area at 4.9%, followed by services at 3.2%, placing Austria’s March reading above the currency bloc average as energy prices strengthened across the region.
The March result extended a modest upward move seen at the start of 2026, after Austria’s inflation rate stood at 2.0% in January and 2.2% in February. In both of those months, services were the main source of price pressure while energy prices were still falling on an annual basis. March changed that pattern as energy turned positive, adding to ongoing services inflation and producing the fastest annual pace recorded in Austria since the higher readings seen in early 2025.
Preliminary data ahead of full release
The March figure is a flash estimate, meaning it is based on the price data available at the end of the reference month before the full validation process is completed. Statistics Austria said such estimates usually incorporate about 80% to 90% of the prices collected for the consumer price index. The full March consumer price index and harmonised index results are scheduled for release on April 16, when the monthly index level and final component data will be published.
For now, the preliminary data show that Austria ended the first quarter with a marked acceleration in consumer price growth after two months of comparatively lower inflation. Services remained the biggest contributor to the overall rate, while energy accounted for most of the month’s jump in the annual headline figure. Food, alcohol and tobacco, along with industrial goods, posted more moderate increases, leaving the March inflation pickup closely tied to fuel and heating oil alongside still-elevated services costs – By Content Syndication Services.