Austria: Inflation edges up in October
November 16, 2010
In October, consumer prices rose 0.2% over the previous month, which was below the revised 0.3% increase observed in September (previously reported: +0.4% month-on-month). The October increase reflected higher prices for clothing and footwear, which were partially offset by lower prices for recreation and culture, as a result of cheaper package holidays. On an annual basis, inflation rose from 1.9% in September to 2.0% in October, on the back of higher prices for mineral oil products (September: +12.7% year-on-year; October: +14.5% yoy). Moreover, annual average harmonised inflation (HICP) jumped from 1.3% in September to 1.5% in October. 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