AT: Inflation at 3.0% in May

Statistik Austria published a flash estimate of Austrian inflation for May today. Inflation, measured by the Harmonised Index of Consumer Prices (HICP), was 3.0% year-on-year, down from 3.3% in April. This means that inflation in Austria remains noticeably above the ECB's target of 2% for the eurozone average. Inflation measured by the consumer price index (CPI) also fell compared to April and stood at 3.0% year-on-year.

According to preliminary estimates by Statistics Austria, energy prices continue to drive inflation, but at +1.3% year-on-year they remained below the general inflation rate. Falling fuel prices are offsetting the effects of sharp rises in electricity prices. Price increases for services remain the main driver of inflation at +4.4% compared to the previous year. Price dynamics in the service sector should ease noticeably in the course of the year due to moderate wage increases. For 2025 as a whole, we expect HICP inflation of around 2.9% and a further slight decline in 2026.