Austrian Times RSS FeedsLike the Austrian Times Facebook page!Follow us on Twitter!


Events for July
M T W T F S S
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
Add your event FREE

Today

Videos


BurgKino

Pub Quiz everyTuesday at Johnny's Pub

Popular in Austria


Cosmo&Nanu

Prices spiral up less strongly

Predictions that the Austrian inflation will decelerate this year appear to be correct.

Products and services on offer in the country cost 2.4 per cent more last month than in March 2011. This increase followed a price jump of 2.6 per cent between February 2011 and February 2012. The annual inflation soared by 3.3 per cent from 2010 to 2011. The Institute for Advanced Studies (IHS) thinks that that the domestic inflation rate could decline to 2.2 per cent in 2012 while Austrians’ spending power is tipped to edge up by 0.7 per cent from 2011 to 2012.

Last month’s inflation of 2.4 per cent was the lowest monthly rate since January 2011. While fruit and electronic appliances are significantly cheaper at the moment than in the first few months of 2011, the price for coffee and gas went up dramatically. Coffee cost 19 per cent more in March 2012 than in March 2011. People using gas to heat their homes had to pay 11.6 per cent more for the same amount of the resource. An increase of flat rents of 4.4 per cent causes further pressure.

Yesterday’s (Tues) inflation report confirms claims by motorists’ associations. Austria’s politically muscular car clubs ÖAMTC and Arbö made aware of rising fuel prices. The price for petrol rises regardless of developments in global trading, according to the organisations. Statisticians said yesterday that car fuel cost eight per cent more last month than in the same month of last year. One litre of diesel costs around twice as much at the moment in Austria than 10 years ago when drivers had to pay 0.72 Euros for it. Repairs and maintenance of cars became more costly as well, the new inflation figures show.

The eight per cent fuel price jump followed an increase of 10 per cent from February 2011 to February 2012. Gas cost 11 per cent more in February 2012 than in the same month of last year. These upward developments were mainly responsible for the monthly inflation of 2.6 per cent. Last month’s flat rent price hikes were established one month after a 4.3 per cent increase from February 2011 to February 2012.

The Labour Chamber (AK) not only claims that real estate agents and landlords are charging inappropriately high prices. The organisation also accuses Austria’s supermarket companies of keeping prices up without any good reason. AK experts compared the price of 40 common supermarkets products on offer in Vienna and Berlin to find that several items’ prices were much more expensive in Vienna. Especially meat, flour, sugar and milk are significantly dearer in the Austrian than in the German capital, they said.

Michael Blass, who heads the Austrian Foodstuff Industry Association, criticised the chamber for concentrating on Austrian-German price gaps. Blass said the AK should check differences in prices between Austrian shops and stores in northern Italy, Switzerland and the Czech Republic instead. "Austrian households spend 22 per cent more for energy and housing today than five years ago. Food spending rose by just 6.4 per cent at the same time," he said.

It seems highly unlikely that the inflation index for March will cause a strong decrease of car sales in Austria, let along people’s transport and traffic habits. More vehicles than ever before were sold in Austria in 2011 when 356,000 new cars were registered for usage. Half of all the distances Austrians covered by car are no longer than five kilometres (km), according to the Austrian Traffic Club (VCÖ). The organisation and the Green Party want more financial and promotional support for public transport and cycling.

Austrian Times


Are you on Facebook? Like the Austrian Times on Facebook and win great prizes!


Cosmo and Nanu
ORF Watch

Related articles: crisis

  1. Drachma reintroduction 'would mean social explosion'

    » General News 2012-05-31

    A renowned economist has warned from reintroducing the drachma in Greece.

  2. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  3. Property prices keep climbing

    » Business 2012-05-31

    A real estate expert has expressed concerns about property prices in Austria.

more related articles tagged "crisis"

Tag cloud:
German  Chamber  Products  fuel  rents  supermarket  Austrian  rsquo  price  moment  significantly  traffic  landlords  using  Ouml  inflation  Blass  Vienna  coffee  cars

Latest News

 

Teen Dying Of Cancer Killed At Charity Event After Ride In Porsche Goes Wrong
The family of a sick boy who was offered a trip in a high-performance Porsche because he was dying of cancer is suing the charity after the Porsche he was travelling in crashed head-on into oncoming traffic.

Japanese Pervert Planned Natascha Kampusch Style Kidnap
A Japanese man inspired by Austrian pervert Wolfgang Priklopil kidnapped a 10-year-old girl and kept her in a purpose-built cellar where he planned to train her to become the perfect wife.

German Hiker Yodels For Help After Getting Trapped In Cattle Grid
A portly hiker dressed in traditional Lederhosen was rescued after he yodeled for help after getting stuck for three hours in a cattle grid.

Austrian Wine Grower Sets New Record For Maturing Grapes
An award-winning Austrian winegrower is believed to have set a new record after leaving harvested grapes for an incredible nine months before fermenting them to create an ultra-sweet white and red wine.

Austrian Castle Owner Shocked By Airplane Wheel In Duck Pond
An Austrian castle owner got a shock after discovering this massive aircraft wheel had landed in his duck pond.

Glock Receives Austrian Award At Birthday Party
Austrian gun maker Gaston Glock has celebrated his 85th birthday with a huge ceremony in which the charitable work of himself and his wife Kathrin was honoured with a top Austrian award, and confirmation that this year two streets and a business park are to be named after him.

Sausage Surprise As Giant Wurst Is Pinched
Austrian police are hunting crooks who broke open a market stall and stole a 1.5 metre sausage worth over 2,000 EUR in the picture postcard village of St Michael in the region of Lungau.

Multi Coloured UFOs In Formation Over Austria
Austrian officials say they are baffled to explain a UFO sighting in which dozens of people reported seeing between 50 and 100 objects flying in formation.

Priests Furious After Porn Films Shot In Local Parish Church
A furious Austrian Catholic priest has complained to police after discovering a local woman had apparently been using his church as a studio to make porn films.

Two metre snake sends woman motorist fleeing
An Austrian motorist got a shock after noticing something hanging down from under her car and realising it was a huge two metre snake that had ended up curled around the engine.

 


Mala Vrata

The most popular stories –
last 7 days



Don't moan alone, the Ombudsman Investigates.

Why suffer in silence. Let off steam by letting our readers share your troubles. File your complaints about anything and everything here.

Our ombudsman David Rogers will try and help solve some of the problems from lazy civil servants through to incompetent companies – and at the very least the worst transgressors will end up in our weekly special report.


Austrian Zimmers