3.3 percent increase

Gastro continues to keep inflation high in the country

Inflation in Austria remains stubbornly high. Compared to the previous month, there was hardly any improvement in May - mainly due to prices in the food service industry. However, there are positive signs for housing, energy and food.

The inflation rate for Austria continues to fall slightly. In May, prices rose by 3.3 percent year-on-year. This means that we are still a long way from the so-called two percent target of the European Central Bank (ECB).

Food prices are stabilizing
Housing and energy in particular have driven prices less than before. But food price increases were also below average. However, prices in the food service sector rose significantly, according to a flash estimate by Statistics Austria. There was no price increase compared to the previous month.

The harmonized consumer price index (HICP), calculated according to European standards, was also 3.3 percent higher than in 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 by comparison. Inflation there has risen slightly for the first time since December last year, but at 2.4 percent, the figure is just under one percent lower than in Austria. In our neighboring country, the gastronomy sector also acted as a price driver. 

Brunner sees positive trend
"Austria now has a lower inflation rate than Spain. There, the HICP rose to 3.8 percent in May," said Finance Minister Magnus Brunner (ÖVP) in a statement. "Experts continue to assume that Austrian annual inflation will halve in 2024 compared to the previous year."