The value for the entire European Union fell to 3.6 percent in October 2023, compared to 11.5 percent a year earlier. And the Austrian inflation rate also fell significantly to 4.9 percent, after 11.6 percent in October 2022.
Compared to other Eurozone countries, the domestic inflation rate is in the upper midfield. Price inflation fluctuates greatly among the Euro states: the highest rates were measured in Hungary (9.6 percent), the Czech Republic (9.5 percent) and Romania (8.3 percent), while in Belgium (-1.7 percent) , the Netherlands (-1.0 percent) and Denmark (-0.4 percent) recorded deflation: goods and services are becoming cheaper. At 3.0 percent, Germany is just above average.
Energy prices in the euro area continued to fall in October: they fell by 11.2 percent year-on-year, after minus 4.6 percent in September. The inflation rate for food, alcohol and tobacco fell further to 7.4 percent, after 8.8 percent in September. Prices for services also fell by 0.1 percentage points to 4.6 percent. The core rate, which does not take into account the volatile energy and food prices as well as alcohol and tobacco, fell from 4.5 to 4.2 percent month-on-month.
This means that inflation is getting closer and closer to the European Central Bank’s (ECB) target of 2.0 percent. The ECB has now raised interest rates ten times in a row in the fight against inflation. The key interest rate is now 4.5 percent. There was a pause on interest rates in October.