"The price increases in the food service industry more than doubled general inflation in July," said Statistics Austria Director General Tobias Thomas on Tuesday. Restaurants and hotels were responsible for almost a third of inflation, while housing still accounted for a fifth. The main reason for this was the price of household energy, which fell significantly less than in June.

The main price drivers compared to the previous month were more expensive package air travel. These rose by an average of 14.6 percent. Clothing has again become cheaper compared to June.

Here you can see the development of inflation in Austria.

Price of alcohol has risen
It is also striking that the price increase for daily and weekly purchases was higher than overall inflation. The micro basket of goods, which includes food but also coffee in coffee shops, rose by 4.1 percent year-on-year in July. Prices for food and non-alcoholic beverages were raised by an average of 1.1 percent. Oils, fats and alcoholic beverages were particularly affected. In contrast, milk, cheese, eggs and fruit became cheaper.

Various goods and services increased in price by 5.3 percent. Prices for healthcare, transport and fuel also rose.

Brunner: "Approaching the target value"
For the first time since July 2021, inflation was below three percent in July. It has stabilized, according to Statistics Austria. "The downward trend continues: The inflation rate is below three percent for the first time in three years. This means that the inflation rate is steadily approaching the ECB's target value. The difference to Germany is also narrowing," commented Finance Minister Magnus Brunner (ÖVP) in a press release.

Here you can see an EU comparison of inflation.

Inflation in the eurozone at 2.6 percent
Inflation in the eurozone rose slightly in July. Compared to the same month last year, goods and services became 2.6 percent more expensive, according to the European statistics authority Eurostat. According to this method of calculation, the rate for Austria was 2.9 percent. In the eurozone, services were the main price drivers, followed by food, alcohol and tobacco.

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