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Austria records highest inflation rate in EU

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Staff writer |
AustriaAustria has recorded an inflation rate of 1.8 percent in May, the highest in the European Union, Statistics Austria revealed.

Despite registering only a 0.1 percent increase year on year, it remains well above the eurozone average, which dropped from 0.7 percent in April to 0.5 percent in May.

Statistics Austria said an accelerated inflation increase of three percent in the "Restaurants and Hotels" segment was among the main causes, and comes against the backdrop of an already 2.5 percent increase in April.

Of even greater overall significance however is a 1.7 percent inflation increase in the "Living, Water, Energy" segment, propelled by a 3.6 percent year-on-year increase in rental prices and a 2.2 percent increase in apartment maintenance fees.

Local media quoted Josef Baumgartner from the Austrian Institute of Economic Research as saying that the reasons for the price increases were primarily structural, with tax increases partly responsible for the increase in rental costs and likely to impact inflation figures until early 2015.

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