According to Statistik Austria another drop in fuel prices pushed inflation down to 0.7 percent in May. In April the inflation rate was still 1.5%. Due to the coronavirus crisis, the calculation of inflation had to be adapted again. Some prices could not be raised as usual and were therefore replaced or updated.
The strongest price mover in a y-o-y comparison was again housing costs in May – the prices for housing, water and energy rose by an average of 2.2% while rents rose 3.2%. Daily purchases rose by an average of 2.1%, while so-called weekly purchases, which include fuel, became 3.1%. The harmonized inflation rate (HICP) for Austria determined for euro-zone comparisons was 0.6%. This put the inflation rate well below the target of just under the 2% limit recommended by the European Central Bank (ECB).
