Austria’s annual inflation rate edged lower to 3% in May 2025 from 3.1% in the previous month, preliminary estimates showed. “Services remain the main driver of inflation with prices rising by 4.4% year-on-year—still strong, though slightly less than in recent months. Food, tobacco and alcohol also saw an above-average price increase of 3.3%. In contrast, energy prices rose by just 1.3%, below the overall inflation rate. This was largely due to significantly lower fuel prices compared to the previous year, which offset the impact of higher electricity costs. Prices for industrial goods saw only a slight increase of 0.8%. The so-called core inflation, which includes services and industrial goods, stood at 3.1% in May” said Statistics Austria Director General Thomas Burg. On a monthly basis, consumer prices fell by 0.1% in May, the first decline in eight months, reversing a 0.2% gain in April.