The Austrian National Bank expects inflation to fall to 3.6 percent this year. This has been halved compared to last year. Inflation should be around 2.7 percent in 2025 and 2.3 percent in 2026.
In January 2023, Austrian inflation reached a 70-year high of 11.6 percent, and by February this year it had fallen again to 4.2 percent. Contributing factors included the government-imposed electricity price cap, the network cost subsidy, and slower price increases for industrial food and non-energy goods. This trend continues, albeit to a lesser extent, the National Bank announced on Wednesday.
High value in services
“Especially in 2024, the changed assumptions for energy prices will have a dampening effect on inflation; Energy prices will decline throughout the forecast period.” However, inflation in the services sector would remain high. According to the National Bank, one of the factors contributing to this is the high demand for tourism.
Continue through the Eurozone
High inflation in the services sector is one of the reasons why Austria’s value will remain above the eurozone average. At the beginning of the year the difference with the eurozone was about 1.5 percentage points.
According to the current forecast, gross domestic product is expected to grow 0.5 percent this year and 1.8 percent next year.
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.
