Austria: Inflation rises in December
January 14, 2011
In December, consumer prices added 0.6% over the previous month, which contrasted the 0.1% fall observed in November. The December rise mainly reflected higher prices for recreation and culture (+1.8% month-on-month), especially for package holidays (+11.4% mom) amid increased seasonal demand. Annual inflation jumped from 1.9% in November to 2.3% in December, which represented the highest level since November 2008. The reading reflected higher prices for transport (+3.8 year-on-year); the result of a pronounced rise in energy prices (+8.8% yoy), especially for petroleum products (+16.0% yoy). Harmonised inflation (based on the HICP) rose from 1.8% in November to 2.2% in December, driving annual harmonised inflation to 1.7% (November: +1.6% yoy), which was exactly in line with the National Bank of Austria's expectations. In its December economic outlook report, the Central Bank expects harmonised inflation to average 2.2% this year. For 2012, monetary authorities anticipate inflation to average 1.8%.
Author: Ricardo Aceves, Senior Economist