Austrian annual inflation declined slightly to 2.2 per cent in July but there were still big increases in living costs, water and energy, said latest figures on Thursday. In the previous two months the rate had been 2.3 per cent, and in April and March as high as 2.6 and 2.9. Statistics Austria said there was a 0.3 per cent drop between June and July, above all due to the start of summer closing sales in clothing. However, a push was given to inflation by more expensive all-in holiday tours. In terms of the Eurozone's Harmonized Consumer Price Index, Austria's rate in July was 2.1 per cent following 2.0 in June. In July, an annual increase of five per cent in the sector of living costs, water and energy caused about two-fifths of the entire inflation. Transport (plus 4.2 per cent) was responsible for a quarter of inflation, with fuels and oils 14 per cent more expensive than a year previously. --SP 1350 Local Time 1050 GMT
