Austria’s Harmonised Index of Consumer Prices (HICP), a comparable EU inflation measure, fell 0.4% month-on-month in July, matching market forecasts, data from Statistics Austria showed. The annual rate remained in positive territory but continued to decelerate from earlier in the year. Lower energy prices and seasonal declines in package-holiday costs drove the monthly decrease, while food prices stayed relatively sticky amid supply-chain pressures and agricultural costs. The data drew little market reaction: the euro held steady against major currencies and Austrian government bond yields were largely unchanged. Austria’s inflation trend is monitored by the European Central Bank (ECB), which targets 2% inflation across the euro area. A sustained decline could support a pause or slowdown in interest-rate increases, although core inflation remains above the headline rate and continues to concern policymakers. Investors are now awaiting the eurozone-wide HICP release. Inflation is expected to ease gradually through 2024, but persistent core pressures and possible energy-price volatility remain risks.