Austria's inflation rate rose to 3.7% in May, reaching a five-month high

(1) According to preliminary data, Austria's annual inflation rate in May rose from 3.3% in the previous month to 3.7%, reaching the highest level since December 2025. (2) Inflation in the services sector increased (4.4%, compared to 4.1% in April), partly due to higher air ticket prices, which was the main factor driving the overall inflation up. Industrial goods prices also increased (1.4%, compared to 0.8% in April). (3) Meanwhile, the growth rate of energy-related costs slowed down, with gasoline inflation declining, and prices for diesel and heating oil falling compared to last month. Inflation for food, beverages, and tobacco also slowed (2.4%, compared to 2.6% in April). (4) Month-on-month, consumer prices rose by 0.1%, slowing from the previous period’s 0.3%.