BRUSSELS (dpa-AFX) - Austria's consumer price inflation likely to be higher in the second quarter supported by a seasonal bounce back in April as well as the continued strength in the tourism sector, Inga Burk, an economist at ING-DiBa, said Wednesday.
Official data showed that inflation eased to 2.0 percent in March from 2.2 percent in February. However, considering the seasonal effects of the late Easter, a temporary rebound in inflation might be on the table in April, the economist said.
The temporary slowdown in March was mainly driven by the softened energy price pressures and a marked seasonal effect owing to this year's late Easter.
'Generally lump sum trips are more expensive during Easter holidays, resulting in higher costs for transport and accommodation services, meaning there is a clear distortion in inflation measurement on a yearly basis in March,' Burk said.
'However, this also means that there should be a noticeable countermovement in April,' the economist added.
Compared to the previous month, prices were higher by 0.6 percent, thanks to clothing and footwear segment were prices were boosted by the seasonal effect of spring/summer collections.
Inflation based on the EU's HICP measure eased to 2.2 percent from 2.4 percent.
'Although the base effect of energy prices is declining, the seasonal bounce back in April as well as continued strength in the tourism sector should drive inflation higher in the second quarter of the year, before gradually slowing down,' Burk added.
Copyright RTT News/dpa-AFX