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Kocher sees no lack of competition in the food trade

Kocher sees no lack of competition in the food trade
Labor Minister Martin Kocher (ÖVP)
Image: APA/GEORG HOCHMUTH

Kocher currently sees no indications that the competition in this area is too weak, he said in an interview with “Standard”. In general, the increase in food prices in Austria was below average compared to Europe in the previous year. In general, it is difficult to speak of “unjustified price increases” in a market economy. “When someone buys the products that have become expensive, there is a demand for them,” said the minister, but also conceded that “food is a specific category and it is important to ensure that people can afford it, especially staple foods”.

He rejects the term “greed inflation” as a “combat concept in the political debate”. Price increases for furniture, tourism and leisure services and new cars are responsible for the fact that inflation is significantly higher than in Germany. “If you factor out these three product categories, there is practically no difference to Germany,” says Kocher. This also shows that food prices play a minor role in the difference in inflation.

“If our only goal were to reduce inflation, then purchasing power would have to be weakened,” said Kocher. Because you didn’t want that, the government worked with financial support. “The fact that this also stimulated demand and thus also created a certain pressure on prices is an automatic result.” But as long as inflation is only “a few months” higher than in Germany, he sees no problem. “If it were like this for five years, it would be different.”

Kocher hopes that energy prices will fall

Kocher sees only a few opportunities to influence: “The public sector can control fees. Overall, there are not so many areas where the federal government can intervene directly,” he said in the “Standard”. Of course, higher inflation will also play a role in wage demands, “but wage policy is made by the social partners. And it’s not like they’re acting irresponsibly.”

With the recent energy cost subsidy for companies, Kocher is counting on the current decline in energy prices continuing. “I assume that if this stays the case, the subsidy in 2023 will not be that expensive anyway,” said Kocher. He also defended that the subsidy was no longer based on energy intensity and was therefore open to trade. Many traders have very small margins and cannot pass on energy price increases to customers, so it is important to prevent bankruptcies. “The relevant question for me is not that you realize afterwards that there were a few companies that might not have needed the subsidy. For me, this subsidy was always a kind of insurance in case energy costs went up massively. “

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