The inflation rate in Austria fell to 2.4% in August, the lowest since April 2021.

The latest reading is 0.2 percentage points above the eurozone average for last month and 0.4 percentage points higher than the European Central Bank's medium-term target of 2%.

According to the Austrian Statistics Office, August’s figure represents a 0.5% decrease from July's rate.

Austrian Finance Minister Magnus Brunner highlighted that this consistent decrease in inflation over recent months signals a steady downward trend, marking a crucial step towards normalising inflation levels in Austria.

Furthermore, Austria’s Economy Minister, Martin Kocher, emphasised the success of government initiatives in curbing inflation, attributing these measures to the continued control of price rises, Mena FN reports.

Tobias Thomas, director of the Austrian Statistics Office, stated that the recent decline in inflation is primarily due to falling fuel and heating oil prices, which have seen significant reductions, contributing to a year-over-year decline in overall prices.

Indeed, in addition, Josef Baumgartner, an economist at the Wifo Institute for Economic Research, noted that fuel and heating oil prices fell by 4% to 5% compared to July and by 8% compared to August the year before.

This substantial drop in energy costs contributed to a 0.4% - 0.5% decrease in the inflation rate for August.

Moreover, Baumgartner highlighted that prices in the country’s service sector remain a major factor affecting Austria's inflation, playing a crucial role in shaping the overall economic outlook.

Austria has experienced high inflation in recent years, with its inflation rate among the highest in the eurozone, Xinhua news agency reports.