Austria’s annual inflation rate eased to 2.8% in July 2026, down from 3.2% in June, coming in slightly above the preliminary estimate of 2.7%. This was the lowest rate in five months, reflecting slower price growth in several key categories. In particular, inflation moderated for alcoholic beverages and tobacco (1.8% vs. 2.0% in June), housing and utilities (2.7% vs. 3.0%), transportation (6.4% vs. 6.5%), education (4.9% vs. 5.5%), and miscellaneous goods and services (3.1% vs. 4.7%).
In addition, prices declined year-on-year for food and non-alcoholic beverages (-0.4% vs. +1.3%) as well as for clothing and footwear (-0.7% vs. +1.8%). By contrast, inflation edged higher in health (4.6% vs. 4.4%), recreation and culture (1.9% vs. 1.0%), and restaurants and hotels (4.6% vs. 4.5%).
On a monthly basis, consumer prices were flat in July, unchanged from June. The annual harmonised index of consumer prices (HICP) increased by 2.7%, down from 3.2% in the previous month and marginally above the initial estimate of 2.6%.
