Consumer prices in April were 9.7 percent higher than in April 2022, Statistics Austria announced on Wednesday. That means an acceleration in inflation (CPI) compared to March’s 9.2 percent. The prices for housing, water and energy rose by 14.7 percent compared to the previous year (after 14.1 percent in March) “and thus remained the most important driver of inflation year-on-year, according to Statistics Austria.
The situation has changed in the “Leisure and culture” category, where prices rose by an average of nine percent, almost twice as much as in March. “Prices for package tours have increased significantly compared to the previous year and are an important driver of inflation for the first time in a long time,” says Tobias Thomas, Director General of Statistics Austria.
In the first summer season since 2019, “unburdened by the pandemic, the desire to travel goes hand in hand with rising prices for flights, accommodation and gastronomy in Austria and the popular holiday destinations abroad”. Package tours, which include summer travel destinations from April, saw a month-on-month increase of 20.9 percent.
expensive energy
Year-on-year, more than a quarter of the price increase was attributable to housing, water and energy, Statistics Austria data released on Wednesday showed. Electricity, gas and district heating in particular were responsible for this, while petroleum products such as petrol and diesel became cheaper. Rents rose 7 percent, adding 0.37 percentage points to inflation within that category.
The numbers also confirm that dining out has become expensive: Hospitality services rose an above-average 14 percent and accounted for 1.54 percentage points of inflation. Food and non-alcoholic beverage prices rose 13.2 percent, accounting for 1.51 percentage points of the increase.
Year-on-year gas was 71 percent more expensive and district heating 98 percent more expensive, while electricity was only 8.6 percent more expensive. The shopping basket for daily shopping (micro shopping basket) increased in price by 13.8 percent and thus more than general inflation, the weekly shopping (mini shopping basket) by 6.4 percent – more on this in oesterreich.ORF.at.
Inflation also continued to rise in the euro area
In the euro zone, too, inflation picked up again slightly in April. Here, consumer prices rose by seven percent within a year, according to the statistics office Eurostat. In March the inflation rate was 6.9 percent, in February it was 8.5 percent. According to the consumer price index (HICP) harmonized at EU level, Eurostat reports 9.5 percent for Austria.
In the countries of the monetary union, inflation varied in intensity: while very high inflation rates were measured in the Baltic states of Estonia (13.2 percent), Latvia (15.0 percent) and Lithuania (13.3 percent), the rate of inflation in Belgium was higher comparatively low at 3.3 percent. In Austria, as in Germany, the rate was 7.6 percent, above the average for the euro countries.
The EU Commission assumes that price pressure in the euro area will remain high for some time. In its current forecast, it estimates an average increase in consumer prices of 5.8 percent for 2023 after 5.6 percent in its winter forecast.
The European Central Bank (ECB) is aiming for a medium-term rate of 2.0 percent for the euro area, which is considered ideal for the economy. ECB chief economist Philip Lane did expect inflation to ease significantly over the course of the year. However, the signs continue to point to interest rate hikes for the time being.
criticism of the government
The opposition criticized the government on Wednesday because of the new figures. “Another day goes by without inflation being fought. Again, not a single price goes down! Instead, poverty and inflation are increasing in Austria because the government has failed and is still failing to fight inflation,” said SPÖ social spokesman Josef Muchitsch.
“In most EU countries, inflation rates are falling – just not in Austria. Austria’s inflation continues to rise and, at 9.7 percent, remains well above the European average. The causes of this permanently high level of inflation are clearly the black-green inability to act,” said FPÖ social spokeswoman Dagmar Belakowitsch.
