Austria: Harmonized inflation edges up in November
Latest reading: Harmonized inflation ticked up to 1.9% in November from October’s 1.8%, but remained below the Euro area average of 2.2% and the ECB’s 2.0% target. Looking at the details of the release, the uptick reflected rebonding price pressures for transportation, a faster increase in food costs and a softer decline in housing prices.
That said, the trend pointed down, with annual average harmonized inflation coming in at 3.2% in November (October: 3.5%). Meanwhile, consumer price inflation ticked up to 1.9% in November from October’s 1.8%.
Finally, harmonized consumer prices rose 0.27% in November over the previous month, moderating from October’s 0.37% increase.
Panelist insight: UniCredit’s Walter Pudschedl commented:
“Inflation has fallen significantly since the beginning of the year, falling below 2% for the third consecutive month at 1.9% in November. After the turn of the year, inflation is expected to rise towards 2.5%, partly due to the abolition of the electricity price brake. After an average of 2.9% in 2024, we expect inflation in Austria to fall to an average of 2.2% in 2025.”