Inflation: What became more expensive – and what cheaper – in the first half of the year?

Anyone who fills up their car, shops daily, or enjoys a coffee at a restaurant likely notices price changes. However, the extent to which individual products have become more expensive over the past six months, compared to the same period last year, might be surprising. "Die Presse," using data from Statistik Austria, examined the most significant inflation increases, revealing unexpected results.

The most striking finding is that public fees experienced the highest inflation jump in the first half of this year. The cost of an e-card surged by 81.1%, followed by driver's license fees at 48.8% and passport fees at 47.6%. These hikes are directly linked to the government's decision to drastically increase federal fees starting July 1, 2025, as part of budget consolidation measures aimed at boosting state revenue and cutting expenses.

Municipal fees also saw substantial price increases. This reflects the need for states to contribute to budget consolidation while managing rising costs for schools, kindergartens, and care services. Lacking direct revenue streams, local authorities often resort to increasing fees for water and waste disposal to balance their budgets. Josef Baumgartner, an economist at Wifo, noted that consolidation pressures and demographic trends almost force authorities to utilize available revenue-generating options.

Nationwide, water fees increased by an average of 9.1% in the first half of the year, and waste disposal fees rose by 3.6%. Vienna, for instance, increased parking fees and fines at the beginning of the year, and the annual public transport pass also became significantly more expensive, now costing 467 euros compared to 365 euros previously. Public fees contributed nearly 8% to the overall inflation rate, reaching about 13% in June, according to Baumgartner.

Energy prices have been a major concern for Austrian households since Russia's invasion of Ukraine caused gas prices to skyrocket. While Austria has since reduced its reliance on Russian gas, rising oil prices, influenced by the Iran conflict, emerged as a new front. Despite these pressures, the price fluctuations for energy in the first half of this year were not as dramatic compared to the same period in the previous year.