The fact that inflation in Austria has risen slightly to 9.8 percent, instead of falling in the previous month, now reinforces calls for more drastic action. The ÖGB and AK are pushing for controls, approval requirements and tax cuts.
WIFO chief Gabriel Felbermayr called for greater price transparency and oversight of the 20 to 30 major foodstuffs, aka a “price police”.
VAT on basic foodstuffs in sight
ÖGB President Wolfgang Katzian is pushing for the abolition or at least half of VAT on basic foodstuffs. “And to make sure that discount doesn’t get out of hand, we need a price database and an anti-inflation committee.” Intervening in the market is no longer possible, because the one-off support to absorb inflation, which previously cost 30 billion euros, only worked once.
Reference to the 1970s
AK chief economist Markus Marterbauer refers to the 1970s, when inflation was also high. At that time there were commissions for which higher wages and prices had to be requested and which only took effect after their approval.
“We must no longer fail to intervene immediately”
Although Austria now imports a third of its goods and services, the prices of which cannot be influenced, “we can no longer fail to intervene immediately,” says Marterbauer.
That would also be cheaper for the budget than aid payments, and a regulation or reduction of the tax on food would also be more socially responsible because it would benefit the low earners in particular. For rentals, a suspension of automatic indexation would be possible.
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.
