Austria Inflation Rate Eases to 3-Month Low

Austria’s annual inflation rate eased to 3.2% in June 2026 from 3.7% in the previous month, preliminary estimates showed. It marked the lowest reading since March, largely due to a slower increase in energy costs, which slowed to 5.4% from 9.8% in May, as fuel and heating oil prices exerted significantly less upward pressure than in the previous month. Inflation also moderated for food, alcohol, and tobacco, slowing to 1.5% from 2.2%, while price growth for industrial goods edged lower to 1.1% from 1.3%. In contrast, services remained the main driver of inflation, with prices climbing 4.4%. On a monthly basis, consumer prices were flat in June, following a 0.1% increase in May. Meanwhile, the harmonised inflation rate stood at 3.1% annually and declined 0.3% from the previous month.

The annual inflation rate in Austria rose 3.7% in May 2026 from 3.4% in the previous month, matching preliminary estimates. This marked the highest reading since November 2025, driven by faster price growth in transportation (8.8% vs. 7.7% in April) and miscellaneous goods and services (4.8% vs. 3.9%). Meanwhile, inflation remained steady in housing and utilities (3.3%), recreation and culture (1.0%), education (5.4%), and insurance and financial services (4.2%). Additionally, deflation eased in information and communication (-1.0% vs. -2.3%). On the other hand, price growth moderated in food and non-alcoholic beverages (2.2% vs. 2.4%), alcoholic beverages and tobacco (2.0% vs. 3.5%), health (4.4% vs. 4.5%), and restaurants and hotels (4.7% vs. 4.9%). On a monthly basis, consumer prices increased 0.1% in May, slowing from a 0.4% rise in the previous month. The harmonised inflation rate (HICP) also accelerated to 3.7% year-on-year from 3.4% in April.

The annual inflation rate in Austria rose to 3.7% year-on-year in May 2026 from 3.4% in the previous month, marking its highest level since December 2025, according to preliminary estimates. Services inflation increased (4.4% vs 4.1% in April), primarily driving the overall rise from the previous month, partly due to higher airline ticket prices. Costs for industrial goods also rose (1.4% vs 0.8%). Meanwhile, energy-related costs increased at a slower pace, with gasoline inflation easing, while diesel and heating oil prices declined compared to the previous month. Food, beverages, and tobacco inflation also eased (2.4% vs 2.6%). On a monthly basis, consumer prices eased to 0.1% in May from 0.4% in the previous period.