The inflation rate in Austria eased to 2.8% year-on-year in July 2026 from 3.2% in the previous month, slightly higher than preliminary estimates of a 2.7% increase. This marked the lowest reading in five months, as price growth slowed for alcoholic beverages and tobacco (1.8% vs 2.0% in June), housing utilities (2.7% vs 3.0%), transportation (6.4% vs 6.5%), education (4.9% vs 5.5%), and miscellaneous and services (3.1% vs 4.7%). Moreover, costs fell for food and non-alcoholic beverages (-0.4% vs 1.3%) and clothing and footwear (-0.7% vs 1.8%). Meanwhile, inflation strengthened for health (4.6% vs 4.4%), recreation and culture (1.9% vs 1.0%), and restaurants and hotels (4.6% vs 4.5%). On a monthly basis, consumer prices were unchanged in July, matching the pace in June. The annual harmonised inflation rate (HICP) rose by 2.7%, slowing from 3.2% in the preceding period, and slightly missing initial estimates of 2.6%.