Austria Inflation Tops Forecasts to 16-Month High

The annual inflation rate in Austria climbed to 3.6% in July 2025, slightly above initial estimates of 3.5% and the previous month’s 3.3%.

This marked the highest reading since March last year, mainly driven by faster price increases of food and non-alcoholic beverages (5.2% vs 4.7% in May), housing and utilities (5.7% vs 5.2%), and miscellaneous goods and services (4.7% vs 3.6%).

Additionally, costs declined at a slower pace for clothing and footwear (-0.2% vs -3.2%).

On the other hand, inflation softened for furnishings, household equipment, and maintenance (0.1% vs 0.3%) and recreation and culture (3.9% vs 4.3%), while it decreased faster for communications (-7.1% vs -6.3%).

On a monthly basis, consumer prices rose by 0.3% in July, slowing from a 0.5% gain in the preceding period.