Inflation in Austria continues to fall. In June, it fell to 3.0 percent, after a revised 3.3 percent in May – the lowest value since July 2021, Statistics Netherlands (CBS) announced on Wednesday. The biggest driver of inflation at the moment is prices in restaurants and hotels, which rose by 6.9 percent compared to the previous year. The energy sector fell, with the exception of electricity and oil. There was also relaxation in the area of food.
Food and non-alcoholic beverages rose by an average of 1.7 percent compared to June 2023, significantly less than the 2.8 percent increase in May. The decisive factor for this was food, which rose by a modest 1.1 percent in June after rising by 2.7 percent in May.
Meat, vegetables, milk and eggs cheaper
Price pressure eased, especially for meat and vegetables. Fruit, on the other hand, became cheaper by 4.2 percent and milk, cheese and eggs became cheaper by 0.9 percent in total. Non-alcoholic beverages, on the other hand, rose in price by 6.1 percent.
Even in the biggest price driver, the hospitality industry, inflation was less severe in June than in May. Prices for housing, water and energy rose by an average of 2.5 percent, about the same as in May. While rents rose by 7.2 percent, energy prices for households fell by 5.3 percent. The price of gas fell by 16.5 percent, that of district heating by 16.6 percent and that of solid fuel by 13.8 percent. Electricity, on the other hand, rose by 5.1 percent year-on-year. Insurance, which is usually indexed, costs 7.5 percent more.
Fuel and car repairs are more expensive
In the transport sector, prices rose by 2.0 percent. The main reason for this was the price development of petrol and diesel, which were 4.0 percent more expensive than in June 2023. People paid 7.2 percent more for repairs to private transport. Prices for airline tickets rose by 12.2 percent and for new cars by 2.1 percent. Used cars became cheaper, namely by 7.3 percent.
The EU-wide harmonised inflation rate (HICP) was 3.1 percent, slightly higher than that of the consumer price index (CPI).
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.
