Austrian Inflation Hits Three-Year Low

Austrian Inflation Hits Three-Year Low

APA/THEMENBILD/HELMUT FOHRINGER

 

Austria’s inflation rate dropped to 3 percent in June, marking its lowest level since July 2021, according to new data released by Statistics Austria.

“Currently, particularly food and fuel prices are contributing less to inflation than before,” Tobias Thomas, Director General of Statistics Austria, said in a statement on Tuesday.

Consumer prices had risen by 3.4% year-on-year in May.

Thomas also highlighted that although price increases in the restaurant sector have abated in recent months, they remain notably above average. Preliminary estimates for Austria’s Harmonised Index of Consumer Prices (HICP) in June stood at 3.2 percent, 0.7 percentage points higher than the Eurozone average.

Initial figures from the EU statistical agency Eurostat – also published on Tuesday – revealed that consumer prices in the Eurozone increased by 2.5 percent year-on-year in June, slightly down from 2.6 percent in May. Finland reported the lowest inflation rate in the Eurozone at 0.6 percent, followed by Italy at 0.9 percent and Lithuania at 1.0 percent. Belgium recorded the highest inflation rate at 5.5 percent, with Spain and Croatia both at 3.5 percent, and the Netherlands at 3.4 percent. Germany’s inflation rate decreased from 2.8 percent to 2.5 percent.

Austrian ministers and economic analysts are optimistic about the decline in inflation, crediting effective policy measures. Nevertheless, concerns persist as Austria continues to grapple with higher inflation compared to several Eurozone peers.

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