MNI BRIEF: Austria Inflation To Outstrip Euro Average Into 2025

Inflation in Austria is expected to reach 6.9% this year before falling to 4.0% next year and 3.1% in 2025, the Austrian National Bank said in a statement on Wednesday, signalling a higher rate than foreseen in ECB projections for the euro area, which have inflation averaging 5.3% in 2023, 2.9% in 2024 and 2.1% in 2025.

Core inflation in Austria is predicted to increase by 1% to 6.1% in 2023, 4.3 % in 2024 and 3.1% in 2025, the OeNB said, compared with the euro area average of 4.6%, 2.5% and 2.2%, with the disinflationary effect of easing energy costs offset increasingly by domestic price pressures and strong wage increases.