Austria's inflation dropped to 2.0% in January 2026, hitting the ECB's target, mainly due to lower energy prices.

Austria's inflation fell to 2.0% year-on-year in January 2026, the lowest in over a year, matching the European Central Bank’s target, driven by a sharp drop in energy prices, especially electricity, which fell 8.2% due to lower taxes and base effects. Food prices rose 2.6%, transportation costs increased 0.2%, and monthly consumer prices declined 0.7%. The EU’s harmonized inflation measure also reached 2.0%, confirming earlier data.