Inflation in Austria in July at 3.6 Percent
Consumer prices rose by 3.6 percent year-on-year in July this year, more than initially estimated by Statistics Austria: originally, they expected 3.5 percent, the authority announced on Wednesday. The harmonized inflation rate was 3.7 percent. Statistics Austria recorded a price increase in food and administrative fees. The biggest price drivers continued to be gastronomy and energy.
Increase in Restaurants and Hotels
The costs for restaurants and hotels rose on average by 5.8 percent, with prices for catering and accommodation increasing equally. While most consumers can save here, they have little choice when it comes to housing, water, and energy. Here, the price increase of 5.7 percent is mainly due to the electricity price, which soared by 35.3 percent within 12 months. Rents increased by 4.2 percent, and for the maintenance of apartments, one had to budget 3 percent more than a year earlier. In the category "Various goods and services," prices rose by 4.7 percent. For insurance, one had to budget only 4.4 percent more, while administrative fees increased by a hefty 47.6 percent.
Consumers also clearly felt the 5.2 percent higher prices for food and non-alcoholic beverages. Coffee became 22.9 percent more expensive. As a result, the inflation rate for non-alcoholic beverages rose by 11.6 percent. The daily shopping became 5.1 percent more expensive for consumers in July than the year before. For the weekly shopping, however, they had to budget for a price increase of 3.1 percent.
Prices for Fuels and Air Tickets Dampening Inflation
Expenditures for transport increased by 0.3 percent. While prices for fuels (-4.7 percent) and air tickets (-1.7 percent) had a dampening effect on inflation, used cars cost 6.4 percent more and new cars 0.5 percent more. Prices for repairs rose by 3.8 percent.
Clothing and shoes became 0.2 percent cheaper. While clothing items were 0.9 percent cheaper, shoes cost on average 2.2 percent more. Leisure and culture cost on average 3.9 percent more. Holidaymakers had to pay 7.1 percent more for package holidays. Leisure and cultural services cost 4.7 percent more than in the previous year.
The harmonized inflation rate for Austria at the European level was 3.7 percent in July. In the Eurozone, however, inflation remained at the European Central Bank's (ECB) target of 2 percent. A significant difference to Austria: in the Eurozone, energy prices fell by 2.4 percent, while they were among the price drivers here. Services became 3.2 percent more expensive in the Eurozone. Prices for food, alcohol, and tobacco rose by 3.3 percent.
(APA/Red)
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