'Serious situation': Inflation in Austria expected to hit 8 percent
Inflation in Austria could hit eight percent in May, new stats show but what is causing the cost of living to rise in the country?
The inflation rate in Austria for May is expected to be announced as eight percent, according to a flash estimate by Statistics Austria.
This represents an increase in consumer prices of 1.1 percent from April's level of inflation and the highest rate in Austria since 1975.
The consumer price index and further results for May 2022 will be released on June 17th.
Tobias Thomas, Director General at Statistics Austria, said: "The increases in energy and fuel prices continue to determine inflation. The last time we saw a higher inflation rate in Austria was in September 1975."
Flash estimates by Statistics Austria are based on the price data stock at the time of publication.
A serious situation
Gabriel Felbermayr, President of the Austrian Institute of Economic Research (WIFO), told ORF's Press Hour on Sunday (May 29th) that the cost of living situation in Austria was "absolutely serious" and called for social benefits to be adjusted in line with inflation.
WIFO has upgraded its inflation forecast for 2022 from 5.8 percent to 6.5 percent. The inflation rate in 2021 was 2.8 percent, and in 2020 it was 1.4 percent.
Additionally, Felbermayr does not expect a return to low inflation rates in Austria any time soon.
A rise in interest rates to beat inflation
As increasing energy prices continue to drive up the rate of inflation in Austria and across the Eurozone, the European Central Bank has announced that interest rates will start to rise in the coming months.
This follows a similar move by the US Federal Reserve and the Bank of England.