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COST OF LIVING

Cost of living: Phone and Internet costs set to rise in Austria

Inflation has prompted Austrian telecom providers to hike telephone and Internet prices as early as April.

Published: 3 March 2023 17:32 CET
Austria's main telecoms providers will be hiking prices to deal with soaring energy costs.
Austria's main telecoms providers will be hiking prices to deal with soaring energy costs. Pictured is a person using a smart phone. Photo by NordWood Themes on Unsplash

The A1 telecom company is slated to bring in rates that are about 8.5 percent higher for both landline and mobile customers on April 1st. Mobile customers will see an increase of anywhere from €2.20 to €6 a month, while landline hikes will be anywhere from €2.30 to €4.50.

The company has about 2.4 million customers in Austria, or just over a quarter of the population.

Drei is also raising its rates, but by a little less on average. Phone plans are slated to go up about €2.20 per month, while data plans will see about a €2 increase.

READ ALSO: Cost of living: 45 ways to save money in Austria

Magenta has not confirmed whether it will be raising rates or not, although Tarife.at Managing Director Maximilian Schirmer tells Der Standard he expects competitors will also end up raising rates. Some customers may not be affected by the increases until their current contract concludes, though.

 
A1 notes that electricity costs have quadrupled in the last year and the network is expanding, which accounts for the increase in prices.

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COST OF LIVING

IN NUMBERS: What are the expenses Austrian families have in 2024?

Couples with children have expenses of over €4,000 a month in Austria, a new survey shows. With prices such as heating costs skyrocketing by 53 percent in 2024.

Published: 28 May 2024 11:34 CEST
IN NUMBERS: What are the expenses Austrian families have in 2024?

Austrian families are facing higher living expenses, and an increased number of them are finding it challenging to repay their debts.

The monthly living expenses have increased by several hundred euros, as shown in the latest reference budget report from debt counselling services in Austria (Schuldnerberatungen), as reported by Vienna AT.

Current costs of living for Austrian families

According to the reference budget, couples with two children now face total monthly expenses exceeding €4,433, while single parents with two children face costs of €3,704, and single-person households costs of €1,730.

Compared to the 2023 reference budget, the monthly living costs for families have increased by several hundred euros. The reference budget for a household with one parent and two children is €300 more than last year.

Heating costs have seen the highest increase, skyrocketing 53 percent. Food prices are up 11 percent, and expenses for social and cultural activities have risen 10 percent. Rental costs have also jumped 8 percent.

Every month, a couple with two children (aged 7 and 14) now spends around €1,149 on food, €569 on entertainment, and €1,054 on rent and maintenance. They also budget about €212 for public transport, €285 for heating and electricity, and €117 for healthcare.

A single parent with two children (aged 7 to 14) spends about €1,021 on food monthly, €403 on entertainment, and €903 on rent and maintenance. Public transport costs the family around €121, heating and electricity about €248, and healthcare around €81.

Additionally, school-related expenses for two children cost parents around €156 per month.

People struggle to pay their debts

Johanna Steurer, project manager at ASB Schuldnerberatungen, the umbrella organisation for debt counselling services, has expressed concern over these rising costs, saying that more people are struggling at the end of the month due to the increased prices, reported Kleine Zeitung. 

New figures show that the high living costs have contributed to an increasing number of people becoming over-indebted, meaning they have more debt than they can manage.

“The high cost of living is becoming increasingly important as a reason for over-indebtedness,” Steurer said.

The reference budgets are calculated annually and show how much money is needed for different types of households to afford a decent life with a minimum of social and cultural participation.

The budgets assume a rented apartment and do not include regional cost differences or car expenses, which average nearly €900 monthly.

READ ALSO: How much does it cost to live in Vienna in 2024?

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