Inflation in Austria was 7.7 percent in May, higher than at any time since the turn of the millennium. More and more people have to limit themselves financially. The war in Ukraine and the accompanying high inflation are having an increasing impact on consumer behavior and thus on the economy. Two-thirds of consumers should already know how much they spend on their daily groceries and would increasingly opt for cheaper products.
Consumers are increasingly turning to cheaper products:
- Savings are mainly made on shoes, clothing and holidays – this can reduce monthly costs by about 100 euros.
- Nearly one or one in four people also cut back on old-age provisions.
This has not gone unnoticed in the retail sector: According to a quick survey by the trade association of 172 retail companies, customer frequency has fallen by 12 percent recently. The retailers surveyed expect a 14 percent drop in sales for the full year 2022 compared to 2019.
75 percent are currently experiencing delivery delays or bottlenecks, and 41 percent are struggling with staff shortages. For 15 percent of the companies, therefore, only limited exploitation – up to and including branch closures – is possible. Another problem: the goods would have to be bought more expensive than ever.
Rising costs also jeopardize vacation plans
Wearing clothes that are longer than is conducive to fashion is the lesser harm when money is tight: 64 percent of them think clothes and shoes offer the greatest savings potential. 55 percent would spend less on vacation. That would be a noticeable sacrifice, however, as many trips planned over the past two years have already fallen victim to the pandemic: 71 percent of all Austrians say they want to travel in the next 12 months.
Savings are made first in the non-essential areas of life. In contrast, day-to-day expenses such as heating and electricity costs – here only one or every tenth respondents see savings potential.
High fuel costs are the biggest annoyance
The Austrians cite rising fuel costs as a major factor in growing financial pressures: 84 percent of all respondents think they are too high, an increase of 34 percentage points from the previous year. Fuel is therefore considered the biggest cost trap in almost all federal states. In Vienna, 71 percent grumbled about the fuel bill and the TeamBank liquidity barometer shows that significantly fewer than average people find the costs of public transport too high.
Austrians like to keep an overview of their finances
Reducing your own expenses on a regular basis starts with getting an overview of where the money is actually going. Here the Austrians are well informed: they are mainly aware of the large, regular items without having to do extra research for them. 89 percent can immediately tell how high their housing costs are, 78 percent know the monthly payment for electricity and at least 75 percent know how much money they spend each month on liability, home contents and similar insurance. 49 percent know exactly how much money is left after deducting the fixed costs, and another 47 percent approximately.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
