Inflation fell to 3.0 percent in May

The inflation rate slightly fell to 3.0 percent in May, down from 3.1 percent in April. Statistics Austria confirmed its early June quick estimate on Wednesday. Compared to April, consumer prices in Austria fell by an average of 0.1 percent. The main drivers of the price increase year-on-year were the prices for housing, water, and energy.

"The strongest price increase year-on-year is again seen in electricity, although the effect on the inflation rate was largely offset by price declines in other energy sources such as gas, heating oil, solid fuels, and fuels," said the Director General of Statistics Austria, Thomas Burg, in the release.

Increase in Electricity and Rents

Electricity became 36.2 percent more expensive compared to May 2024. The price of heating oil fell by 13.1 percent. For gas, there was a decrease of nine percent, and for solid fuels, a decrease of 7.8 percent. Fuels became 9.1 percent cheaper year-on-year. Rents (including new leases) increased by 4.1 percent over the same period.

In the gastronomy sector, prices rose by an average of 5.8 percent. Accommodation services became 3.9 percent more expensive - however, the dynamic here is clearly slowing down, after 5.7 percent in April. Food and non-alcoholic beverages became 3.5 percent more expensive. Food prices alone increased by 2.4 percent. Non-alcoholic beverages became 8.8 percent more expensive. Coffee prices rose particularly sharply by 22.3 percent.

In the transport sector, in addition to fuels, airline tickets became 3.1 percent cheaper. While new cars cost 0.2 percent more than in May of the previous year, used cars became 4.3 percent more expensive.

The price decline of 0.1 percent compared to April 2025 is partly due to a decrease in fuel prices (minus 2.2 percent). In contrast, catering services were the price drivers in the monthly comparison with an average price increase of 0.4 percent.

No Difference Between CPI and HICP

There was no difference in May between the inflation rate according to Austrian calculation (CPI) and that according to the harmonized European calculation method (HICP), which also amounted to 3.0 percent and serves for easier comparability between European countries.

The price level of the micro basket, which reflects a daily purchase of groceries, daily newspapers, and coffee in a café, rose by 4.5 percent. The mini basket, which represents a weekly purchase (including services and fuels), became 1.8 percent more expensive year-on-year.

(APA/Red)

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