The country dropped down a place from last year, when it was the second most expensive country for food and non-alcoholic drinks, behind Denmark which has been in first place for several years.
The latest figures released by Eurostat this month show that the prices of food and non-alcoholic drinks in Austria are 120% of the average price in the EU, a slight drop from last year when it was 124%. Food in the most expensive country - Denmark - is about 145% of the average EU price.
When it comes to bread, cereals and meat, Austria is still the second most expensive place, behind Denmark and one place ahead of Sweden.
At the opposite end of the scale, the lowest price levels for food and non-alcoholic drinks were found in Poland where they were 63% of the average, followed by Romania (64%) and then Bulgaria (70%).
Austria is still one of the cheapest places to buy cigarettes in central and western Europe, however, with tobacco costing 85% of the EU average in the Alpine Republic.
The figures are based on the results of a price survey covering 440 products across Europe, carried out by the European group looking at purchasing power on the continent.