The annual inflation rate in Austria slowed to 3.8% in December 2025 from 4% in the previous month, marking the lowest reading since July, preliminary estimates showed. “Energy prices in particular slowed at the end of the year, as fuel prices had a dampening effect after three months of increase. Electricity, on the other hand, remained expensive. On average, energy prices rose by 9.0% in December, following an increase of 10.9% in November. Once again, the strongest driver of inflation was the services sector. Prices here rose by 4.4% in December, almost as much as in November with +4.5%. Inflation accelerated for food, tobacco and alcohol. Here, prices rose by an above-average 4.1% in December, following an increase of 3.6% in November”, according to Statistics Austria Director General Manuela Lenk. On a monthly basis, consumer prices rose by 0.4% in December, following a 0.3% gain in the preceding period.