Austria: Harmonized inflation unchanged in October
Latest reading: Harmonized inflation was stable at September’s 1.8% in October, undershooting both the ECB’s target and the Euro area average of 2.0%. October’s result marked the joint-lowest inflation rate since February 2021. Looking at the details of the release, faster price pressures for food and transportation offset a sharper decline in housing and textile costs.
As a result, the trend pointed down, with annual average harmonized inflation coming in at 3.7% in October (September: 4.0%). Meanwhile, consumer price inflation was stable at September’s 1.8% in October.
Finally, harmonized consumer prices increased 0.37% from the previous month in October, accelerating from the 0.27% rise logged in September. October’s figure was the highest reading since March.
Panelist insight: Analysts at the EIU commented:
“We expect this 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.”