Inflation Climbed to Annual High in July

In June, the inflation rate was 3.3 percent. The Harmonized Consumer Price Index (HCPI) was 3.6 percent in July - significantly above the inflation rate of 2.0 percent in the Eurozone.

Energy and Industrial Goods as Culprits

The rise in inflation in Austria was mainly due to energy and industrial goods. Energy increased from 3.5 percent in June to 4.3 percent. In particular, gas and heating oil were less price-dampening in July than in the previous month. Industrial goods also increased significantly - from 1.0 percent in June to 1.4 percent - with clothing items in particular having a less dampening effect on overall inflation.

Core inflation - consisting of industrial goods and services - was 3.3 percent in July. Services showed an almost constant inflation of 4.5 percent and thus continued to contribute the most to overall inflation. In the area of food, tobacco, and alcohol, inflation remained unchanged at a high of 4.4 percent.

Finance Minister Markus Marterbauer (SPÖ) commented on the figures as "still far too high," particularly noting that the development in food prices hits the population hard. Measures such as the rent price cap and reform steps in the energy sector, including social tariffs, are steps in the right direction, but further price-dampening measures are urgently needed.

"More Than Sobering and Alarming"

"We take the development very seriously," said Finance State Secretary Barbara Eibinger-Miedl (ÖVP) and also referred to the new Electricity Industry Act to sustainably reduce energy costs. State Secretary Josef Schellhorn (NEOS) described the inflation figures as "more than sobering and alarming" - the government will "pull out all the stops to stop this negative price spiral."

For FPÖ economic spokesperson Barbara Kolm, the high inflation in Austria shows "the failure of ÖVP, SPÖ, and NEOS on all levels."

Inflation in the Euro Area Stable

In contrast to Austria, inflation in the euro area remained stable in July compared to the previous month at 2.0 percent, thus at the target value of the European Central Bank (ECB). The lowest annual July rates are estimated for Cyprus (0.1 percent), France (0.9 percent), and Ireland (1.6 percent). The highest rates are recorded in Estonia (5.6 percent), Croatia, and Slovakia, each with 4.5 percent. Germany's inflation slightly decreased to 1.8 percent, from 2.0 the month before.

(APA/Red)

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