Excessively priced coffee offering: 1 kilogram selling for 30 euros
In the heart of Europe, Austrian consumers are feeling the pinch of high food prices, with many expressing feelings of burden and frustration. The Austrian government has pledged to work towards fair and affordable prices, as the issue of questionable pricing policies by corporations in the country continues to be a matter of concern.
The persistent inflationary pressures and slow decline in inflation rates in Austria are linked to this issue. Inflation, which averaged 3.1% in the first five months of 2025, has been slow to decline, with a stubborn rise in service prices at about 4.5%. This slow progress in controlling inflation suggests that some corporations might maintain higher pricing, leading to concerns about pricing policies that seem excessive or not fully justified by costs alone.
The economic context in Austria is also a significant factor. The country's economy is recovering very gradually, with GDP growth expected at just 0.2% in 2025 amid geopolitical and trade uncertainties. This subdued growth places pressure on corporate profits and could influence corporate behavior regarding price setting to sustain margins despite weak demand.
However, no direct government intervention specifically targeting questionable pricing practices has been reported. Authorities appear to be addressing the broader economic and fiscal environment to support fair market conditions rather than imposing direct controls on pricing policies at this time. The European Central Bank and Austrian institutions have focused on reducing interest rates to manage inflation, aiming indirectly to ease cost pressures that could affect corporate pricing.
One area of particular concern is the so-called "Austria surcharge" on branded food and drugstore products. Consumer advocates, trade representatives, and competition watchdogs have been criticizing this surcharge for years, and it has been found to affect many supermarket items. Roasted coffee, for instance, was almost twice as expensive in June 2022 compared to a year ago, with premium varieties costing more than 30 euros.
The Federal Competition Authority (BWB) has been investigating this issue and has criticized the market power of supermarket chains. The BWB called for more price transparency, more legal certainty for suppliers, and stronger consumer protection against misleading discounts. However, no progress has been made since the BWB's recommendations, as prices have continued to rise.
Austria is among the countries where consumers pay the most for food, with above-average food inflation for months. Food prices in Austria are higher than in neighbouring countries, contributing to inflation. The European Union plans to lift territorial supply restrictions, but it is up to individual states to implement this. However, the Austrian government has not yet actively advocated against supply restrictions in Brussels, and the responsible minister has been remarkably silent on the issue.
The "Austria surcharge" is now under investigation by Brussels to strengthen the internal market and relieve consumers. The recommendations of the Federal Competition Authority (BWB) following its industry investigation of the food retail sector in 2023 are still pending implementation.
An example of the price difference between Austria and Germany is Nivea Sun sunscreen LSF 50+ 200 ml, which costs 10.95 euros at Müller in Germany but 18.45 euros at Müller in Austria. As the Austrian government continues its efforts to address high food prices, consumers will be closely watching for any progress and action taken.
- The 'European Central Bank', along with Austrian institutions, has focused on reducing interest rates to manage inflation and ease cost pressures, which could potentially affect corporate pricing in personal-finance matters.
- Amidst geopolitical and trade uncertainties, the slow GDP growth in Austria places pressure on corporate profits, potentially leading businesses to maintain higher pricing in the general-news context.
- The 'Federal Competition Authority (BWB)', as well as Brussels, are investigating a controversial practice known as the "Austria surcharge", particularly relevant to the finance business, on branded food and drugstore products, aiming to strengthen fair market conditions and alleviate consumer burdens.
