Austrian Alarm Bells: Rising Energy Prices and Higher Inflation on the Horizon
8 Articles
8 Articles
This year, electricity costs could break a hole in the Austrians' pocket and significantly boost inflation. The problem is the principle that determines the price of electricity, says Gabriel Felbermayr, head of the Institute for Economic Research (Wifo).
Energy prices could rise in the wake of conflicts in the Middle East, which could push up inflation while economic growth prospects deteriorate, according to the head of the Austrian Wifo economic research institute.
The GDP forecast for the current year is probably lowered by the economic research institute, Wifo head Felbermayer demands: "Excursion of the gas price upwards must be decoupled from the electricity price."
GDP forecast for the current year is likely to be lowered by the Economic Research Institute.
For Gabriel Felbermayr, head of the Institute for Economic Research (WIFO), the world's political situation offers little reason for optimism. A new wave of rising energy prices captures Austria, which will increase inflation by more than three percent, says Felbermayr at the ORF "Pressestunde" on Sunday. Policy interventions are difficult, because the budget offers little room for manoeuvre.
Like many other experts, Wifo CEO Gabriel Felbermay r expects rising energy prices due to conflicts in the Middle East. Annual inflation, which the institute last predicted at 3 percent, is rising. On the other hand, the expected economic growth, which was most recently expected by Wifo for 2026 at 0.9 percent, is down. Similar to [...]
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