Our country continues to struggle with unusually high inflation. A survey now shows that citizens feel an inflation of no less than 19.5 percent. On the other hand, the situation in our German and Swiss neighbors looks much brighter.
With an inflation rate of 9.0 percent in May, Austria is well ahead of Germany at 6.1 percent and Switzerland at 2.2 percent. If you ask the Austrian population, the perceived inflation in the second quarter was even 19.5 percent. There are many reasons for this difference in inflation rates, according to an analysis by credit insurers Acredia and Allianz Trade.
Price frustration in gastronomy
“One reason for the difference in inflation is the different shopping baskets,” said Gudrun Meierschitz, CEO of Acredia. “Austria has a strong tourism sector, where investments in higher quality have recently led to significant price increases. Since the tourism sector in Austria has almost three times as much weight in the basket of goods as in Germany, this leads to higher inflation.”
But government support measures would also have an effect: in Germany, fuel discounts, 9 euro and 49 euro tickets reduced inflation. In Austria, on the other hand, prices in the hotel and catering industry rose sharply after the end of the VAT reduction.
The low inflation in Switzerland, on the other hand, is due to the strong Swiss franc, according to documents from the credit insurers. Due to the higher incomes, there is also a different consumer behavior.
Different buying behaviour
One point of the study is perceived inflation: “Consumers, for example, pay more attention to price changes for products they buy frequently, such as food, drink or fuel,” says Meierschitz. “When these prices rise above average, people see inflation as much higher,” Acredia’s CEO said. However, the perception of inflation is also influenced by psychological aspects, demographic and regional differences and individual consumer behaviour.
The perceived inflation rate of 19.5 percent in the second quarter is twice the actual rate. However, the difference between perceived and real inflation plays a major role. Because perceived inflation affects consumer behavior and changes their purchasing behavior.
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.
