Inflation in Austria increased by 2.2% in February

Vienna, March 4, 2017 – The inflation rate in Austria rose again during the month of February, by 2.2% compared to the same month last year, and it also rose on a monthly basis by a slight rate of 0.2% compared to last January, according to the latest estimates issued by the Austrian Statistics Authority.

The inflation rate was still at 2% during the month of January, and its current rise is partly due to the lessening effect of energy prices on inflation compared to the recent period. While energy prices in February remained lower than last year, with a decrease of 4.1%, the decline in January was 4.9%, and the easing effect was particularly weak on fuel prices.

Statistics Authority experts attributed the main reason for the rise in inflation to the decline in the impact of energy prices on inflation compared to last January, as they did not contribute to curbing inflation with the same effectiveness, as happened during the month of January, in conjunction with the rise in service sector prices, which constituted the strongest driver of the rise in the inflation rate, as its prices rose by 4%, in addition to the rise in food and tobacco prices by 3%, more than in January. Statistics also indicated an increase in cigarette prices due to the increase in the tobacco tax.

Martin Kocher, Governor of the Austrian National Bank, explained that developments in the Middle East region raise a state of uncertainty about the energy file, and he expected that the rise in oil and gas prices, as well as disruptions in global supply chains, would negatively impact inflation, investment, and economic growth in the near future.

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