Austria's inflation rate has dropped to 2.9% in July, marking the lowest level in three years.

This decline is primarily attributed to a significant reduction in food price pressures, which are no longer major contributors to inflation.

In contrast, prices in the hospitality sector continue to rise at an above-average rate.

The latest figures from Statistics Austria indicate that the inflation rate fell from 3.0% in June to 2.9% in July, with final numbers expected in September.

Finance Minister Magnus Brunner noted that the inflation rate is approaching the European Central Bank's target, and the gap between Austria and Germany's inflation rates has narrowed to just 0.3%.

Overall, while prices are still rising, the pace of increase has slowed considerably.