Last year, the average cost of living in Austria increased by 2.8 percent, driven by price hikes in transport, household energy, restaurants and hotels.
This is above the two percent target rate of annual inflation set by the European Central Bank but below the 2021 inflation rate in neighbouring Germany which increased to 3.2 percent.
The rate in Austria also fluctuated throughout 2021, starting at 0.8 percent in January and ending at 4.3 percent in December. The average rate of inflation across Europe in December was 3.8 percent.
Tobias Thomas, Director General at Statistics Austria, said: “In 2021, the inflation rate doubled to 2.8 percent compared to the previous year, the highest level in ten years.
“Inflation was fuelled by sharp increases in fuel and household energy prices – without them the inflation rate would have been 1.8.
“The background is not least the crude oil prices on the world markets, which increased by more than 50 percent last year.”
The 2021 report by Statistics Austria shows transport costs in Austria increased by an average of 6.6 percent. This was the primary driver in the overall increase in cost of living due to a 17.3 percent rise in the price of fuel.
Additionally, the cost of flight tickets rose by 8.3 percent, repairs for private transport rose by four percent, the cost of new cars by 3.2 percent and used cars by 3.7 percent.
Housing, water and energy costs jumped by 3.6 percent last year making it the second biggest driver in rising prices in Austria. The main reason was a 7.7 percent increase in the cost of household energy, but other factors include housing maintenance (+4.4 percent), materials (+4.7 percent) and rent (+2 percent).
This was followed by the cost of restaurants and hotels, which rose by 3.4 percent. In restaurants, the price of a Schnitzel increased by 4.6 percent in 2021, and vegetarian dishes went up by 5.8 percent.
Alcoholic beverages and tobacco products were 2.4 percent more expensive in Austria in 2021.
Did anything get cheaper in Austria in 2021?
Fortunately, there is some good news to come out of the Statistics Austria report which shows a few items did get cheaper last year.
Messaging (text messages) was 2.9 percent cheaper in 2021, and the price of telephone and fax services dropped by 2.8 percent.
Fish cost 2.7 percent less in 2021 and the overall rate of inflation for food and non-alcoholic drinks was just 0.8 percent. In 2020, the average price of food and non-alcoholic drinks rose by 2.3 percent.