Inflation in Austria remains rock solid. Compared to the previous month, there was hardly any improvement in May; The prices in restaurants are mainly responsible for this. However, there are positive signs when it comes to housing, energy and food.
The inflation rate for Austria continues to decline slightly. In May, prices rose by 3.3 percent year on year. We are still far from the so-called two percent target of the European Central Bank (ECB).
Food prices stabilize
Housing and energy in particular have driven prices less than before. But food price increases were also below average. However, prices in the catering industry rose sharply, CBS announced after a quick estimate. There was no price increase compared to the previous month.
The Harmonized Consumer Price Index (HICP), determined according to European standards, also amounted to 3.3 percent compared to the same month last year. According to the preliminary flash estimate, this corresponds to an increase of 0.1 percent compared to the previous month.
Still far behind Germany
In Germany, for example, things look much better in comparison. Inflation there has risen slightly for the first time since December last year, but at 2.4 percent it is almost one percent below that in Austria. The catering industry also drove up prices for our neighbor.
Brunner sees a positive trend
“This means that Austria now has a lower inflation rate than Spain. There, the HICP rose to 3.8 percent in May,” Finance Minister Magnus Brunner (ÖVP) said in a statement. “Experts still expect Austrian annual inflation to halve in 2024 compared to the previous year.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
