Austria: Harmonized inflation increases in December
Latest reading: Harmonized inflation rose to 2.1% in December from November’s 1.9% but remained below the EU’s average. Looking at the details of the release, the increase reflected stronger price pressures for transport and a softer fall in housing and utilities prices. That said, costs for food and non-alcoholic beverages grew at a milder pace.
That said, the trend pointed down, with annual average harmonized inflation coming in at 2.9% in December (November: 3.2%). Meanwhile, consumer price inflation ticked up to 2.0% in December from the previous month’s 1.9%.
Lastly, harmonized consumer prices rose 0.68% in December over the previous month, accelerating from November’s 0.27%. December’s result marked the highest reading since September 2023.
Panelist insight: EIU analysts stated:
“We expect this overall deceleration in inflation to continue throughout the forecast period as energy prices continue to decline. However, risks are tilted to the upside: should oil prices rise again, or if disruptions to shipping in the Middle East push up global freight costs significantly, this could have a knock-on effect on price-setting in other parts of the Austrian economy, and inflation could remain higher for longer than previously expected.”