Austria: Harmonized inflation falls to a near three-year low in June
Harmonized inflation came in at 3.1% in June, down from May’s 3.3% but outpacing the Euro area average of 2.5%. June’s reading marked the lowest inflation rate since July 2021. Looking at the details of the release, price pressures for food and non-alcoholic beverages plus transportation slowed markedly. That said, price growth for housing and utilities accelerated.
Accordingly, the trend pointed down, with annual average harmonized inflation coming in at 4.8% in June (May: 5.2%). Meanwhile, consumer price inflation fell to 3.0% in June from May’s 3.3%.
Finally, harmonized consumer prices rose 0.04% over the previous month in June, below the 0.09% rise recorded in May. June’s result marked the weakest reading since January.
Maximilian Möstl, analyst at Erste Bank, commented:
“We expect inflation to continue its downward trend in 2024, as inflationary pressure is easing in almost all sectors. However, inflation in the services sector, supported by wage increases, is likely to keep core inflation at a high level for a while yet.”