Austria’s annual inflation rate rose to 3.2% in August 2026, up from 2.8% in the previous month, preliminary estimates showed. Prices increased for energy, which jumped 10.0% year-on-year from 5.7% in July. Moreover, prices for food, tobacco, and alcohol rebounded to 0.2% from a 0.1% decline, although gains were still capped by the reduction in VAT on basic foodstuffs from 10.0% to 4.9%, which took effect in July 2026. In contrast, price growth for manufactured goods moderated to 0.5% from 0.8%, while services continued to exert the strongest upward pressure on inflation despite easing slightly to 4.3% from 4.4% a month earlier. On a monthly basis, consumer prices increased by 0.6% in August, following a flat reading in the preceding period.