Austria: Harmonized inflation increases in August
Harmonized inflation came in at 7.5% in August, up from July’s 7.0% and well above the euro area average of 5.2%. The rise in inflation was attributed to the fact that fuel prices dampened inflation less than in prior months. Looking at the details of the release, while prices for transportation rebounded, there were slower price increases for food and housing.
Annual average harmonized inflation edged down to 9.7% in August (July: 9.8%). Meanwhile, consumer price inflation rose to 7.4% in August, from July’s 7.0%.
Finally, harmonized consumer prices rose 0.32% in August over the previous month, contrasting July’s 0.19% fall. August’s result was the highest reading since April.
On the outlook, analysts at Erste Bank commented:
“ […] given the very high inflation in September/October 2022, we expect a significant decline in inflation in these months of 2023, due to base effects. Overall, we expect inflation to continue its downward trend, albeit at a slower pace than previously assumed. The main reasons for this are high core inflation, supported by high prices for services and industrial goods, wage increases and persistently high prices for household energy. Food prices are also expected to remain high for some time, especially in the processed food sector.”