Austria has been suffering from the high cost of living prices, and inflation for April is expected to reach 7.2 percent, according to a preliminary estimate by Statistik Austria.
Compared to the previous month, the price level is expected to rise by 0.3 percent, the federal statistics office said.
“Life in Austria continues to become noticeably more expensive. In addition to the continuing inflation-determining price increases for fuels and energy products, food also has an additional price-increasing effect,” said Statistik Austria Director-General Tobias Thomas.
The increases are very much reflected in supermarket prices.
According to Statistik Austria, oils and fats have had the highest price increases (13.3 per cent in a year on year comparison), followed by vegetable prices (9 per cent in a year on year comparison).
Bread and cereal prices were up by 7.2 per cent, and milk, cheese and eggs prices rose by 5.5 per cent.
Fruits have also been costing 4.7 per cent more in March 2022 than in March 2021. In addition, meat, which is already an expensive product for Austrians, has increased in price by 4.1 per cent.
There were also substantial price increases for non-alcoholic beverages, particularly coffee, which rose 12.3 per cent.
Why is inflation so high?
Prices are rising worldwide, not just in Austria. And much of it has to do with the Russian war on Ukraine, which brings up fuel prices and affects the entire supply chain of several products on supermarket shelves.
However, that is not the only factor.
A special IHS Markit report on food inflation stated that the Russian invasion is just the most recent event exacerbating food inflation, especially as both countries are significant exporters of grains and vegetable oils.
Another factor for rising prices is competition with Chinese demand for feedstuffs such as soybeans, corn, sorghum, wheat and other grains.
Production and logistics issues have also impacted prices globally. For example, adverse weather in Brazil affected the production of corn, soybean, and even coffee.
In addition, transportation issues and even Covid-related labour shortages have also hindered production and logistics and increased prices.