Austria: Harmonized inflation falls to lowest level in three years in July
Harmonized inflation inched down to 2.9% in July from June’s 3.1%. July’s figure represented the weakest inflation rate since July 2021 but outpaced the Euro area average of 2.6%. The figure was largely due to a slower increase in prices for food and non-alcoholic beverages. In addition, price pressures for transportation softened.
As a result, the trend pointed down, with annual average harmonized inflation falling to 4.4% in July (June: 4.8%). Meanwhile, consumer price inflation edged down to 2.9% in July from the previous month’s 3.0%.
Finally, harmonized consumer prices fell 0.36% from the previous month in July, swinging from the 0.04% rise seen in June. July’s result marked the joint-weakest reading since January 2021.
UniCredit’s Walter Pudschedl commented:
“The disinflation process will almost come to a standstill in the second half of the year. Inflation is likely to fluctuate around 3 percent by the end of the year […] as the weak economy dampens second-round effects.”