Austria's Ministry of Finance, together with the State Secretaries for consumer protection and deregulation, presented an interim assessment and forward plan for the government’s inflation response, centred on energy-price relief, tighter oversight of food pricing practices, housing cost controls and a planned reduction in value-added tax (VAT) on selected basic foodstuffs from 1 July 2026. Measures highlighted included an energy package adopted in December cutting the electricity levy to 0.1 cent for households and halving it for companies, alongside requirements for greater transparency and the mandatory pass-through of falling energy prices, plus relief on levies and network costs. In the food sector, the release cited December 2025 food inflation of 4.1% in Austria compared with 0.8% in Germany and 1.7% in France, and pointed to enforcement actions against misleading discounts, a shrinkflation labelling obligation from April 2026 with fines of up to EUR 15,000, and a central price transparency database for ongoing monitoring across the value chain. Statistics Austria’s newly presented Price Radar is intended to make 100 products comparable from farm to shelf, while penalties for price and discount tricks are being increased and the Federal Competition Authority is to receive additional powers, including regular analysis of purchase and sales prices. On housing, a rent package adopted in December extends a rent brake to previously unregulated rents, introducing a statutory cap on rent increases from 2026 and lengthening the minimum fixed term for new leases from three to five years; the ministry stated that more than 2.5 million people will be relieved. Next steps flagged included the VAT cut on selected basic foodstuffs being financed through a levy on non-recyclable plastic and a charge on parcels from third countries, continued expansion of the price database with the possibility of targeted regulatory intervention where mark-ups cannot be justified, and a further deregulation package and first deregulation report to follow during 2026.
Ministry of Finance (Austria) 2026-01-19
Austria's Ministry of Finance outlines inflation measures including a July 2026 VAT cut on selected basic foodstuffs
Austria's Ministry of Finance and State Secretaries outlined plans for inflation response, focusing on energy-price relief, food pricing oversight, housing cost controls, and a VAT reduction on basic foodstuffs from July 2026. Key measures include an energy package reducing electricity levies, enhanced food sector transparency with penalties for misleading practices, and a rent package introducing caps and extended lease terms, with further steps involving VAT adjustments and regulatory interventions planned for 2026.