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COST OF LIVING

Milk, cheese and eggs by 19.5 percent: How food prices in Austria are rising

In August 2022, the inflation rate was at 9.3 percent, falling from the 9.4 percent registered in July, according to Statistics Austria, but the prices of certain items of food have rocketted.

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Inflation on essential food items has risen in Austria. (Photo by JEAN-PIERRE MULLER / AFP)

“In August 2022, the inflation rate fell slightly for the first time since April 2021, but remains above the nine percent mark at 9.3 percent”, said Statistics Austria’s director general Tobias Thomas.

“The main reason for the slight decline was fuel prices, which fell by 10.4 percent compared to the previous month but remained the strongest driver of inflation year-on-year”, he added.

READ ALSO: From inflation to Covid: What to expect from Austria’s winter season

Higher costs for housing, water and energy (+13.8 percent; heating oil +106.6 percent, gas +71.0 percent) turned out to be the most important price driver, followed by transport (+16.8 percent compared to August 2021; including fuels +44.0 percent and used cars 24.4 percent).

The third most significant price driver was food and non-alcoholic beverages (+13.1 percent; food +13.0 percent). In particular, there were increases in basic food items such as bread and cereal (+12.8 percent). Milk, cheese and eggs also cost noticeably more, with a 19.5 percent increase.

The price of meat is up 14.3 percent, vegetables by 12.1 percent and  oils and fats by 30.1 percent. At least the cost of fruit has only risen by 3.1 percent in Austria.

READ ALSO: ‘Mission 11’: Austrian government reveals tips on how to save energy and fuel

Restaurants and hotels showed price increases of 9.9 percent.

“Without the current development of fuel prices, inflation would be 9.9 percent”, Thomas said.

“In contrast, the trend of rising prices for household energy, food and catering remained unbroken,” Statistics Austria Director General added.

READ ALSO: ‘I feel ripped off’: What it’s really like living in Austria right now

Social assistance

With high inflation and rising costs of living, Austria’s federal government has announced several measures looking to cushion the effects on the public.

From bonus payments to a cap on electricity prices, one of the most significant measures for the population is the one-off €500 payment known as the “climate and anti-inflation bonus”, or Klimabonus, for short.

The climate bonus payment should arrive to every person entitled (around eight million people) in the coming weeks.

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COST OF LIVING

Fuel to become even more expensive for drivers in Austria from October

On Saturday, the new carbon tax comes into effect, making petrol and diesel in Austria more expensive. Here's what you need to know.

Fuel to become even more expensive for drivers in Austria from October

Austrian motor associations have already warned people to expect long lines at fuel stations ahead of October. This is because, from October 1st, the new CO2 tax will come into effect in the country, making fuel prices soar – again.

People filling up their tanks in Austria can expect the price of a litre of diesel (including VAT) to rise by € 0.099 and petrol by € 0.086, according to calculations made by the Austrian Institute of Economic Research (WIFO).

READ ALSO: ‘Mission 11’: Austrian government reveals tips on how to save energy and fuel

The difference in price increases is because the new CO2 tax of €30 per tonne has a more significant impact on diesel compared to petrol due to the higher CO2 content in diesel.

Fuel prices had already been on the rise since Russia’s invasion of Ukraine, as The Local reported. And the prices have risen more steeply in the Alpine country, which hasn’t put any price cap or lowered taxes, plus suffered with a damaged oil refinery in Lower Austria affecting supply.

The increases have contributed to growing inflation in Austria, which will reach double-digit in September, according to Statistic Austria.

READ ALSO: EXPLAINED: Why are fuel prices increasing faster in Austria than elsewhere in the EU?

The CO2 tax

The CO2 tax is part of Austria’s eco-social tax reform presented in 2021. CO2 emissions would be taxed at €30 per ton, making things like carbon-based fuel and heating more expensive in the country.

The reform brought in the “climate bonus” payment to compensate residents for the financial burden of the CO2 tax. The one-off bonus for Austrian residents would depend on the person’s place of residence and its connection to the public transport network.

This year, due to the rising inflation, the Klimabonus was set at €250 for everyone who lives in Austria, and a €250 “anti-inflation” payment was added to the one-off payout.

READ ALSO: Reader question: What should I do if I haven’t received Austrian government’s €500 payment?

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