Financial News: Austrian Inflation Eases To 5-month Low

Austrian Inflation Eases To 5-month Low

(RTTNews) - Austria's consumer price inflation moderated in July to the lowest level in five months amid a slight fall in food prices, flash data from Statistics Austria showed on Friday.

The consumer price index climbed 2.7 percent year-over-year in July, slower than the 3.2 percent increase in June. Moreover, this was the lowest inflation rate since February, when prices rose 2.2 percent.

The slowdown in inflation in July was largely due to a 0.1 percent fall in food prices, which grew 1.5 percent in June.

"The reduction in VAT on basic foodstuffs from 10 percent to 4.9 percent, effective from 1 July 2026, is likely to have contributed significantly to this slight fall in prices," Manuela Lenk, Director General Statistics at Statistics Austria, said.

The annual price growth in manufactured goods eased to 0.8 percent from 1.1 percent. Services inflation remained stable at 4.4 percent, while inflation based on energy accelerated to 5.7 percent from 5.4 percent.

On a monthly basis, consumer prices dropped 0.1 percent.

The EU measure of inflation, the harmonized index of consumer prices, rose 2.6 percent annually in July, while it fell 0.4 percent compared to June.

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