The director of the economic research institute Wifo, Gabriel Felbermayr, thinks that a recession is possible in the autumn and expects the European Central Bank to raise interest rates again. He is less likely to believe that the rent cap and other measures will come into effect in the coming months, as he explained on Sunday evening in the ORF program ‘Im Zentrum’.
According to the SPÖ and FPÖ, the government is responsible for the high inflation, which the ÖVP contradicts. “We need optimism and confidence,” said ÖVP MP Andreas Hanger. SPÖ trade unionist Josef Muchitsch and Dagmar Belakowitsch, the FPÖ’s deputy club leader, acknowledged this in line with the demand: “Finally do something.”
Felbermayr, in turn, pointed out that real household disposable incomes were “relatively constant,” which was a result of the one-off payments. Lower income groups in particular would have benefited from this. Things look a little different in the middle class, says the Wifo boss.
High inflation, high wages
According to the economist, it is clear that high inflation also leads to high wage agreements – but it should be worth not using rolling inflation (the previous inflation of the past twelve months; note) when negotiating wages, but rather from a more recent inflation rate. . But that will probably no longer be the case in this year’s autumn wage round, says Felbermayr
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.
