Inflation Forecast 2024-2028 from June 2024

Inflation is expected to slow significantly from 7.8 percent in 2023 to 3.4 percent in 2024 and 2.5 percent in 2025. The ECB's 2 percent target is not expected to be reached in Austria until mid-2026. The higher persistence of inflation in Austria is due to price-income-price effects and indexation. Despite the decline in the inflation rate, Austria is likely to remain in the group of countries with higher inflation rates within the euro area in 2024-25.