Austria Inflation Hits 15-Month High

Austria’s annual inflation rate is expected to rise to 3.5% in July 2025, marking the highest reading since April last year, from 3.3% in the previous month, preliminary estimates showed.

“This increase is primarily attributable to industrial goods, which rose by 1.4% after 1.0% in June, as clothing items in particular had a significantly smaller dampening effect on overall inflation year-on-year than recently.

Energy prices increased by 4.3% up from 3.5% in June.

Gas and heating oil had a noticeably smaller dampening effect on prices in July than in June.

Services showed a nearly constant inflation rate of +4.5%.

This sector continues to make the largest contribution to overall inflation.

The price increase in the food, tobacco and alcohol sector also remained persistently high at +4.4%” said Statistics Austria Director General Thomas Burg.

On a monthly basis, consumer prices increased by 0.2% in July, slowing from a 0.5% gain in the preceding period.