Inflation in Austria: The products that are finally getting cheaper
Inflation in Austria fell to 8 percent in June, with some products more than 20 percent cheaper than in the same month last year.
Price pressures in Austria eased slightly in June, as inflation fell to 8 percent from 8.9 percent in May, as reported by Statistics Austria on Thursday.
However, Austria's inflation rate is still high if compared to the entire Eurozone (5.5 percent).
The European Central Bank is currently aiming to reach a Europe-wide inflation rate of two percent, and is expected to raise interest rates on July 27th to help achieve this.
Despite the relatively high inflation rate, some products in Austria are actually getting much cheaper if compared to the previous year, and for many others, the price increase is at least slowing down.
What's getting cheaper?
Oil-based energy products are seeing the biggest drop in prices. Heating oil prices dropped by 28.2 percent in June compared to the same month of the previous year and prices at the gas station have also decreased significantly.
READ ALSO: Is inflation finally subsiding in Austria?
Diesel is now 24.2 percent cheaper than in June 2022, when the price per litre was over two euros. Super gasoline was 21.8 percent cheaper in June compared to the previous year.
Other products seeing a price decrease are mobile phones, which became slightly cheaper on average, resulting in an overall price drop of 5.4 percent. There were also smaller price falls in the cost of LED lamps (-3.7 percent), cutlery (-2.4 percent), and frying pans (-1.2 percents).
Where prices are rising less steeply
The steep price increases in the gastronomy sector, household energy, and food have slightly weakened in June.
While household energy prices remain very inflated compared to 2022, the price rise at least seems to be slowing down slightly. In May, gas was 79.1 percent more expensive than the previous year, but in June, statisticians only recorded an increase of 77.1 percent. The same trend was seen with electricity: after an 8.4 percent increase in May, the price increase in June was only 6.9 percent.
As for food, in May, average prices were still 12.1 percent higher than the previous year, but in June, they were 10.6 percent higher – still more than the overall inflation. However, the price increase has slowed down considerably, especially for dairy products such as milk, cheese, and eggs (May: +16.8 percent, June: +9.6 percent), but also bread, meat, and fruit showed lower price increases.
In total, the price hike of the average shopping basket dropped by 2.3 percent from May to June this year.
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Price pressures in Austria eased slightly in June, as inflation fell to 8 percent from 8.9 percent in May, as reported by Statistics Austria on Thursday.
However, Austria's inflation rate is still high if compared to the entire Eurozone (5.5 percent).
The European Central Bank is currently aiming to reach a Europe-wide inflation rate of two percent, and is expected to raise interest rates on July 27th to help achieve this.
Despite the relatively high inflation rate, some products in Austria are actually getting much cheaper if compared to the previous year, and for many others, the price increase is at least slowing down.
What's getting cheaper?
Oil-based energy products are seeing the biggest drop in prices. Heating oil prices dropped by 28.2 percent in June compared to the same month of the previous year and prices at the gas station have also decreased significantly.
READ ALSO: Is inflation finally subsiding in Austria?
Diesel is now 24.2 percent cheaper than in June 2022, when the price per litre was over two euros. Super gasoline was 21.8 percent cheaper in June compared to the previous year.
Other products seeing a price decrease are mobile phones, which became slightly cheaper on average, resulting in an overall price drop of 5.4 percent. There were also smaller price falls in the cost of LED lamps (-3.7 percent), cutlery (-2.4 percent), and frying pans (-1.2 percents).
Where prices are rising less steeply
The steep price increases in the gastronomy sector, household energy, and food have slightly weakened in June.
While household energy prices remain very inflated compared to 2022, the price rise at least seems to be slowing down slightly. In May, gas was 79.1 percent more expensive than the previous year, but in June, statisticians only recorded an increase of 77.1 percent. The same trend was seen with electricity: after an 8.4 percent increase in May, the price increase in June was only 6.9 percent.
As for food, in May, average prices were still 12.1 percent higher than the previous year, but in June, they were 10.6 percent higher – still more than the overall inflation. However, the price increase has slowed down considerably, especially for dairy products such as milk, cheese, and eggs (May: +16.8 percent, June: +9.6 percent), but also bread, meat, and fruit showed lower price increases.
In total, the price hike of the average shopping basket dropped by 2.3 percent from May to June this year.
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