Austria continues to keep inflation in check: the Alpine republic is said to be the fourth most expensive country in the eurozone. So the domestic consumer’s shopping budgets are melting away. Over the past three months, the available budget has decreased for more than half of households.
These are tough times, many Austrians have to tighten their belts. Only less than a tenth can look forward to an increase in the household budget. This is the conclusion of a recent study by the Johannes Kepler University Linz (JKU). Savings are mainly made on larger purchases such as furniture or electrical appliances.
Lower-income households are hit harder
More than 1,100 people were interviewed for the analysis. The results would show that especially low-income households increasingly have to make do with fewer resources for their purchases, the study authors write.
The budget for their purchases has decreased in 63 percent of all households with a monthly net income between 1,001 and 2,000 euros. For households with an income of more than 5,000 euros, this applies to just over a third of all cases. Regional differences emerge only gradually. According to the study, the reluctance to buy is similar in western and eastern Austria.
No relief in sight
No easing is expected in the short term. “An end to the reluctance to buy is not yet in sight. Because three-quarters of Austrians expect prices to rise further. Still not good news, especially not for non-food retailers, because it’s easier to save there than with groceries,” says Ernst Gittenberger of the Institute for Trade, Sales and Marketing (IHaM) at the University of Linz.
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.
