
The inflation rate in Austria fell to 2.9% in July, according to a flash estimate by Statistik Austria.
This marks the first time in three years that the rate has dipped below 3%. In June, the year-on-year inflation rate was still at 3.0%.
While inflation has eased in the food sector, “price increases in the gastronomy sector remain disproportionately high,” said Statistik Austria head Tobias Thomas, according to a press release on Wednesday.
The price level in July is expected to have remained unchanged from June. The Harmonised Index of Consumer Prices (HICP), used for EU comparisons, also stood at 2.9% in July, according to the preliminary estimate, with the HICP dropping by 0.3 percentage points from June.
Finance Minister Magnus Brunner noted that the flash estimate results confirmed the “declining trend” in inflation.
“The inflation rate is gradually approaching the European Central Bank’s target value. The difference with Germany is also narrowing: there is now only a 0.3 percentage point difference in the HICP,” the minister said in a press release.
In Germany, the harmonised consumer price index was provisionally at 2.6% in July.