FX.co ★ Austrian Inflation Confirmed At 31-Month Low

Austria’s inflation rate has moderated to its lowest point in over two and a half years, according to preliminary figures for April released by Statistics Austria.

The consumer price index rose by 3.5% year-over-year in April, a deceleration from the revised 4.1% increase witnessed in March. This is consistent with the flash estimate published on April 30.

While this marks the lowest inflation rate since September 2021, it remains double the European Central Bank’s target rate of 2.0%.

The primary drivers behind the slowdown in inflation were a substantial decline in gas prices and reduced costs for package holidays.

Food and non-alcoholic beverage prices saw a slight decrease in annual growth, easing to 3.2% from 3.4%. Similarly, utility costs grew at a slower rate of 3.2% compared to 4.2% in March.

"Nonetheless, price hikes in restaurants remain above average, and there has been an acceleration in price increases at petrol stations," noted Tobias Thomas, Director General of Statistics Austria.

On a monthly basis, consumer prices saw a marginal increase of 0.1% in April, in line with earlier estimates.

EU-harmonized inflation also eased to 3.4% in April, down from 4.1% the previous month, reaffirming the initial data.