Austrian Inflation Hits 2.7%, EU Rate Hike Odds Rise

Austria's inflation rate rose to 2.7% in July, surpassing market forecasts of 2.6%, according to data released by Statistics Austria.

The harmonized index of consumer prices (HICP) increased from the previous month's annual rate, driven mainly by higher costs in the services sector, including hospitality and recreation, as well as continued increases in food prices.

Austria's inflation reading is closely watched by the European Central Bank (ECB) as it considers the timing of future interest rate decisions. The eurozone-wide HICP for July is due later this week, and the Austrian figure may add to concerns that inflation is proving stickier than anticipated.