Clothing, furniture and other goods are now also attracting attention. They pushed inflation to 11 percent in October. This is a new record, the highest value in 70 years.
After 10.6 percent in September, inflation is likely to have risen further to 11 percent in October. The price of the micro shopping basket for daily shopping even increased by 12.2 percent (graph). Headline inflation should already be 11.5 percent for November.
Services also affected
The reason for this is that the inflation tsunami is being driven by more and more goods and services, according to Tobias Thomas, Austria’s head of statistics: “There is a significant increase in the prices of clothes, which have hardly increased in price in recent months. In addition, the price spiral for furniture is spinning faster and less dynamic for food and gastronomy.” Conclusion: Even if you exclude household energy and fuel, inflation in October was already 7.3 percent.
“But in December the brake on the electricity price should kick in and bring significant relief, especially in eastern Austria,” Baumgartner of the Economic Research Institute (Wifo) said in an interview with the APA. For the main price drivers, household energy and fuel prices, the “uptrend has come to an end for the time being,” said Thomas. According to Baumgartner, a reduction in voltage can also be expected for mineral oil products.
First, groceries have to become even more expensive. Experts expect the wave to level off somewhat at the beginning of the year. In 2023, annual inflation could reach 6.5 percent.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
