Ruqayyah Snyder
The Consumer Price Index (CPI) is a key economic indicator for Austria and Europe, measuring inflation and general price trends. The CPI is used to maintain the value of monetary amounts, such as rents and alimony payments, and is also used as a basis for wage negotiations. The CPI data is updated monthly and is calculated by CEIC using the monthly Harmonized Core Consumer Price Index provided by Eurostat. The CPI has been subject to revisions since 1958 and is an important benchmark for Austrian and European data users.
| Characteristics | Values |
|---|---|
| Definition | The consumer price index (CPI) is a measure of general price trends and of inflation in Austria. |
| Coverage | The geographical and population coverage includes any purchases made by households within Austria, including those made by tourists. |
| Calculation | CEIC calculates Core Consumer Price Index Growth from monthly Harmonized Core Consumer Price Index. |
| Data Availability | Austria Core CPI Change data is updated monthly. |
| Data Sources | Statistics Austria provides Consumer Price Index with base 2020=100. Eurostat provides Harmonized Core Consumer Price Index with base 2015=100. |
| Recent Data | Austria Consumer Price Index (CPI) growth was measured at 3.2 % YoY in Feb 2025, compared with a rate of 3.2 % in the previous month. |
| Historical Data | The data reached an all-time high of 43.8 % YoY in Aug 1951 and a record low of -9.4 % YoY in Jun 1953. |
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What You'll Learn
CPI growth and change
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. It is a benchmark for general price developments and inflation in Austria. The CPI is used as a measure of inflation for policymakers, financial markets, businesses, and consumers. It is also used to maintain the value of monetary amounts, such as rents and alimony payments, and it is the data basis for wage negotiations.
The CPI is widely used by financial market participants to gauge inflation and by central banks to calibrate their monetary policies. For instance, the Federal Reserve targets an inflation rate of 2%. If the inflation rate exceeds this target, the Fed may adjust the Fed funds rate to enact contractionary monetary policy. Similarly, if market growth slows, expansionary monetary policy may be enacted to stimulate the economy.
The CPI is also used by businesses and consumers to make informed economic decisions. For instance, businesses may use the CPI to set prices for goods and services, while consumers may use it to assess their purchasing power and spending capacity. Landlords may use CPI information to determine annual rent increases for renters. Employees may also refer to CPI reports when approaching their employers for a raise based on nationwide increases in labour rates.
The CPI is calculated as a weighted average of prices for a basket of goods and services representative of aggregate consumer spending. It measures the overall change in consumer prices based on this basket of goods and services over time. The CPI is a key indicator of inflation and deflation and is closely followed by policymakers, financial markets, businesses, and consumers.
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Inflation rate
The inflation rate in Austria is measured by the Consumer Price Index (CPI). This index is a benchmark for general price developments and inflation in the country. It is used to monitor price trends and changes in the cost of living over time. The CPI is calculated and published by Statistics Austria, with data updated monthly.
The CPI includes a basket of goods and services that reflects the current consumer behaviour of households in Austria. It takes into account a wide range of items, such as food, energy, insurance, and other seasonal purchases. The basket of goods and services is revised periodically to ensure it remains representative of consumer spending patterns.
The CPI is designed to capture the prices of goods and services purchased by households within Austria, including purchases made by tourists. It records the actual prices paid, including taxes, and covers both urban and rural areas. Interest and borrowing costs are excluded, as they are considered finance costs rather than consumption expenditure.
The CPI is a critical indicator for Austrian and European data users. It serves as a reference for maintaining the value of monetary amounts, such as rents and alimony payments. Additionally, it provides essential data for wage and salary negotiations, helping to ensure that incomes keep pace with the rising cost of living.
Over the years, Austria has experienced fluctuations in its inflation rate. For example, in February 2025, the CPI growth rate was measured at 3.2% year-over-year, while historical data shows that the CPI reached an all-time high of 43.8% YoY in August 1951 and a record low of -9.4% YoY in June 1953.
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CPI revisions
The Consumer Price Index (CPI) is a measure of the average change in prices paid by consumers for goods and services. The CPI is used to maintain the value of monetary amounts, and it is also used as a benchmark for general price developments and inflation. The CPI is also used as a data basis for wage negotiations. The CPI is calculated by obtaining prices for most goods and services through personal visits, telephone calls, web, or app collection by trained representatives. The price changes for the various items in each location are then aggregated using weights, which represent their importance in the spending of the appropriate population group. Local data is then combined to obtain a city average.
The CPI is typically released as unadjusted data, which is of primary interest to consumers concerned about the prices they pay. The unadjusted data is also used extensively for escalation purposes, such as collective bargaining contract agreements and pension plans. However, the CPI also produces seasonally adjusted data, which is computed using seasonal factors derived by the X-13ARIMA-SEATS seasonal adjustment method. These factors are updated annually and used to revise the previous five years of seasonally adjusted data.
The CPI is typically released on a monthly basis and is subject to revisions. For example, the CPI for the United States is released by the Bureau of Labor Statistics (BLS) on a monthly basis and is subject to revision. The BLS advises against using seasonally adjusted data in escalation agreements because these series are revised annually for up to five years. Intervention analysis seasonal adjustment (IASA) is a process used by the BLS to estimate and remove distortions caused by extreme values or sharp movements from the data before calculating seasonal factors.
The CPI can also be calculated for specific population groups, such as urban consumers or wage earners, and for different geographic areas, such as cities or regions. These different calculations can provide more detailed information about price changes in specific areas or for specific groups of consumers. The CPI for All Urban Consumers (CPI-U) and the CPI for Urban Wage Earners and Clerical Workers (CPI-W) are considered final when released, but the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) is issued in a preliminary form and is subject to three subsequent quarterly revisions.
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CPI and HICP differences
The Consumer Price Index (CPI) is a benchmark for general price developments and inflation in Austria. It is also used to maintain the value of monetary amounts (e.g. rents, alimony payments) and as a data basis for wage negotiations.
The Harmonised Index of Consumer Prices (HICP), on the other hand, is the basis for the comparable measurement of inflation in Europe and the assessment of monetary stability within the eurozone. The HICP is a consumer price index compiled according to a methodology that has been standardised across EU countries. The Eurozone HICP is a weighted average of price indices of member states that have adopted the euro.
The HICP is an indicator of inflation and price stability for the European Central Bank (ECB). The ECB's primary goal is to maintain price stability, defined as keeping the year-on-year increase in the HICP target at 2% over the medium term. The HICP is also used to assess the convergence criteria on inflation, which countries must fulfil to adopt the euro.
The HICP differs from the US CPI in several ways. Firstly, the HICP attempts to include rural consumers in its sample, while the US CPI survey is based solely on the urban population. Secondly, the HICP excludes owner-occupied housing from its scope, while the US CPI calculates "rental-equivalent" costs for such housing.
In Austria, Core CPI Change data is updated monthly and averaged 1.769% from January 1997 to March 2024. This data excludes unprocessed food and energy.
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CPI calculation methods
The Consumer Price Index (CPI) is a measure of inflation and deflation, and it measures the change in prices paid by consumers for a basket of goods and services over time. The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted average of prices for this basket of goods and services, which is representative of aggregate US consumer spending. The CPI is based on about 80,000 price quotes collected monthly from retail stores, service establishments, rental units, and doctors' offices. The CPI is a benchmark for general price developments and inflation in Austria. It is also used to maintain the value of monetary amounts, such as rents and alimony payments, and it serves as the data basis for wage negotiations.
There are two main CPI indexes: the CPI-U and the CPI-W. The CPI-U, or the Consumer Price Index for All Urban Consumers, represents over 90% of the total US population and is based on the expenditures of all families living in urban areas. The CPI-W, or Urban Wage Earners and Clerical Workers, is used for escalation primarily in blue-collar cost-of-living adjustments (COLAs). The long-term movements of the two indexes are similar, but there can be small differences in the short term due to differences in the spending habits of the two population groups.
The CPI calculation can be affected by non-seasonal economic events (called interventions) or methodology changes, which can cause erratic behaviour in the index series. Intervention analysis seasonal adjustment can be used to factor out these non-seasonal events, such as outliers and level shifts, before the calculation of seasonal adjustment factors. When a price goes uncollected, the BLS uses a method called carry forward imputation, where the price is imputed using data from the last collected period, as if the price had not changed. This method is used if other imputation methods cannot be applied or when prices are fixed by regulation.
The CPI also accounts for substitution effects, which refer to consumers' tendency to shift spending away from products that have become relatively more expensive. It adjusts price data for changes in product quality and features, with the weighting of product and service categories corresponding to recent consumer spending patterns derived from a separate survey.
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Frequently asked questions
The Consumer Price Index (CPI) is a measure of general price trends and inflation in Austria. It is used to maintain the value of monetary amounts and is also used as data for wage negotiations.
The Austrian CPI is calculated monthly.
The harmonized index of consumer prices (HICP) is the basis for the comparable measurement of inflation in Europe and for the assessment of monetary stability within the euro zone. The CPI is a national index and differs from the HICP in that it includes investment-related expenses for construction and some tax-like charges.
The Core CPI is a specific measure of the CPI that excludes unprocessed food and energy.
