Economic institute raises inflation forecast to 6.5% for Austria in 2022

Par :| Key words : austria-economy-inflation| Updated on 30-05-2022

Analysts at the Austrian Institute for Economic Research (WIFO) have raised their inflation forecast for Austria in 2022 from 5.8% to 6.5% due to the lingering energy crisis.

Gabriel Felbermayr, director of WIFO, told Austrian TV channel ORF on Sunday that the Austrian economy was “not prepared for such high inflation rates”.

According to data released by Statistics Austria earlier this month, Austria’s year-on-year inflation rate hit 7.2% in April, the highest figure since October 1981. The rise in inflation is mainly due to soaring prices for fuel, energy products and food.

To cope with rising inflation, Felbermayr suggested increasing social benefits like minimum income and child benefit, ORF reported.

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