Austria: Inflation rises to its highest level in more than two years
February 28, 2011
In January, consumer prices fell 0.2% over the previous month, which contrasted the 0.6% increase observed in December. Annual inflation rose from 2.3% in December to 2.4% in January, which represented the highest level since October 2008. The main drivers behind the annual increase were higher prices for transport, which were fanned by heightened fuel prices. The annual increase also reflected higher prices for utilities, which came on the back of elevated energy prices. Meanwhile, annual HICP inflation (based on harmonised index of consumer prices) rose from 2.2% in December to 2.5% in January, pushing annual average HICP inflation to 1.8%. In its December economic outlook report, the Central Bank anticipates HICP inflation to average 2.2% this year. For 2012, monetary authorities expect inflation to average 1.8%.
Author: Ricardo Aceves, Senior Economist