After 8.7 percent in June, the inflation rate is likely to have risen to an average of 9.2 percent in July, according to calculations by Statistics Austria as part of a flash estimate. This is the highest level since March 1975.
“While there are renewed price increases for household energy and gastronomy, the prices for food and fuel remain at a high level,” said Statistics Austria Director General Tobias Thomas on Friday, according to a statement.
The harmonized inflation rate (HICP) for Austria, which is used to compare the eurozone, was 9.3 percent in July according to a preliminary flash estimate. The European Central Bank (ECB) actually sees an annual inflation rate of 2 percent as ideal. On July 21, the ECB Council decided to raise interest rates for the first time in eleven years in order to curb inflation. Higher inflation reduces the purchasing power of consumers because they can afford less for one euro.
Source: Nachrichten
