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Inflation in Austria 'drops to seven percent'

The Local Austria
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Inflation in Austria 'drops to seven percent'
A fruit and vegetable market displays prices in Vienna, Austria. Photo: Martin Lostak on Unsplash

According to initial estimates released by Statistik Austria, inflation has dropped dramatically once again in Austria - from eight percent in June to seven in July.

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The trend of falling inflation appears to have continued this July, according to initial estimates.

The cost of living rose by seven percent compared to the same month in 2022, while month-on-month prices crept up by 0.1 percent. 

"In July 2023, inflation in Austria has once again eased significantly," said Statistik Austria director Tobias Thomas. "After eight percent (inflation) in June, price increases in July fell to seven percent on average, according to an initial estimate - and thus to the lowest value since March 2022."

READ ALSO: Cost of living: When will prices in Austria go down?

Over the course of 2022, Austria battled an inflation rate of 8.9 percent on average - though towards the end of the year the monthly rate regularly topped the 10- and 11-percent mark.

In the first month of this year, the country was still seeing inflation of 11.2 percent, but aside from a blip in April this has been declining month-on-month ever since. 

According to statistics experts, this is largely to do with the stabilisation of prices on the energy market, which had shot up due to supply issues and Russia's invasion of Ukraine. 

"The prices for household energy, which had risen massively at the beginning of the Ukraine war and are now driving inflation much less than a year ago, have had an impact," explained Thomas. "In addition, fuel and heating oil are significantly cheaper compared to July of the previous year."

Nevertheless, the country still has one of the highest rates of inflation in the Eurozone, and consumers are still being hit by a steep rise in the cost of groceries.

READ ALSO: Inflation in Austria: The products that are finally getting cheaper

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Back in May, average rises in food prices stood at a whopping 12.1 percent. In June, this slipped down slightly to 10.6 percent - though the inflation rate for food still remains consistently above the average inflation rate.

The figures for July are initial estimates from Statistik Austria. The official inflation rate and further results for July will be announced by the statistics agency on August 18th. 

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