Inflation in Austria accelerated further in June. According to a quick estimate by Statistics Austria, inflation is likely to be 8.7 percent. Compared to the previous month, the price level is expected to rise by 1.4 percent. In May, prices were 7.7 percent higher than a year ago. Inflation thus reached its highest level since September 1975.
“Inflation has meanwhile increased in almost all areas,” Austria Statistics Director-General Tobias Thomas said on Friday.
“In addition to recent increases in fuel and heating oil prices, we are also seeing significant price increases in restaurants and food retail.”
According to a preliminary flash estimate, the Harmonized Index of Consumer Prices (HICP) also rose 8.7 percent year-on-year. Compared to the previous month, the price level has risen by 1.2 percent according to the HICP.
Flattening economy and significantly higher inflation
The Austrian economy is still growing strongly due to catch-up effects, but real wages are falling. In 2023, inflation will probably put a brake on economic growth, but purchasing power will increase again. In addition, private consumer spending is increasing because holidays and purchases are being made up.
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.
