Austria: Inflation eases in November
December 16, 2010
In November, consumer prices slipped 0.1% over the previous month, which contrasted the revised 0.3% increase observed in October (previously reported: +0.2% month-on-month). The November drop was mainly the result of lower prices for recreation and culture, as well as for alcoholic beverages. On a year-on-year basis, inflation fell from 2.1% in October to 1.9% in November, reflecting less pronounced price increases for energy, especially petroleum products (October: +14.5% yoy; November: +10.6% yoy). Harmonised inflation (based on HICP) fell from 2.0% in October to 1.8% in November. Nevertheless, annual average harmonised inflation climbed from 1.5% in October to 1.6% in November. In its biannual economic outlook report, the Central Bank raised its inflation forecasts and now expects harmonised inflation to average 1.7% both this year and next, up from its previous forecast of 1.5% for this year and 1.6% for 2011.
Author: Ricardo Aceves, Senior Economist