Household energy is mainly responsible for the rise in inflation in Austria to 10.5 percent – the highest value since 1952.
Household energy alone rose 64 percent in September (37 percent in August) compared to the same month last year. According to Statistics Austria, the big jump is influenced by the tariff changes in Vienna and Lower Austria (for gas and electricity). Among the price drivers, fuels are in second place, with diesel in particular becoming 52 percent more expensive (see chart below).
We had to pay 13.9 percent more for food and non-alcoholic drinks, and 10.5 percent more for restaurants and hotels. The so-called micro-shopping basket, which reflects daily shopping, increased in price by 11.5 percent. Since the middle of the year, this, which mainly includes food, has always risen slightly more than headline inflation.
Higher inflation was last measured in 1952 (14.1 percent). The inflation wave of the 1970s (oil crisis) was already surpassed in September. Economic researchers do not expect a noticeable easing until mid-2023.
This is creating a gloomy mood in the economy: A Deloitte survey of executives shows that only 42 percent view the situation positively. A year ago it was 86 percent. Only a quarter see a positive mood in the working population. 91 percent see inflation as the biggest challenge. Eight in ten companies expect a general economic downturn. Half of the managers expect energy shortages in the winter.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
