Inflation continues to rise sharply in Austria. In January, the inflation rate was probably 5.1 percent, which would be the highest value since November 1984: This is the result of calculations by Statistics Austria for a quick estimate.
In December, inflation was still 4.3 percent. “The increase in fuel prices year-on-year in January 2022 was a little less sharp than in December, but continued to drive inflation. There were also strong price increases in electricity and especially gas prices,” said Statistics Austria Director General Tobias Thomas yesterday, Wednesday.
Statistics Austria wants to publish the details of the price development in January on February 23.
Inflation is becoming a problem throughout the euro area: services and goods cost an average of 5.1 percent more in January than a year earlier, as the statistics office Eurostat has calculated on the basis of preliminary data. Experts had expected a slowdown to 4.4 percent – after 5.0 percent in December.
This means that inflation is even further away from the target set by the European Central Bank (ECB), which is targeting a rate of 2.0 percent as the optimal value for the economy. This should come as a negative surprise for the ECB, which is again setting the monetary policy course today. In the scenario designed by the ECB staff, inflation will stabilize in 2022 and there will be a gradual decline in inflation.
Italy: Expensive groceries
The main drivers in other countries are the sharp rise in energy prices, but also more expensive food: In Italy, inflation climbed to 5.3 percent compared to the same month last year and was thus higher than at any time since the introduction of the euro. After 4.3 percent in December, economists had assumed a decline to four percent.
Source: Nachrichten
