Austria's harmonized inflation is expected to fall to just below 3% in 2025, the Austrian National Bank (ONB) said on Tuesday.

Inflation, according to the harmonised index of consumer prices (HICP), is expected to be 7.4% this year, 4.1% next year and 2.9% in 2025, the bank said in a statement.

"Thus the inflation differential to the euro area will only reach the long-term average again in 2025," it said. (Writing by Miranda Murray, Editing by Rachel More)