Austria: Harmonized inflation falls to lowest level since March 2022 in July
Harmonized inflation came in at 7.0% in July, down from June’s 7.8%. July’s figure represented the weakest inflation rate since March 2022. The decline was driven by reduced price pressures recorded for food and non-alcoholic beverages, transportation, and housing and utilities.
Accordingly, the trend pointed down slightly, with annual average harmonized inflation coming in at 9.8% in July (June: 10.0%). Meanwhile, consumer price inflation fell to 7.0% in July, from June’s 8.0%.
Finally, harmonized consumer prices fell 0.18% from the previous month in July, contrasting the 0.28% increase seen in June. July’s result marked the weakest reading since December 2022.
On the outlook, analysts at Erste Bank commented:
“We expect inflation to continue its downward trend, but to remain at a high level for some time. The main reasons are high core inflation, supported by high prices for services and industrial goods as well as wage increases. Food prices are also likely to remain high for some time, especially in the processed food sector. There are upside risks if companies are to maintain high profit margins in the face of higher wages.”