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COST OF LIVING

Cost of living: Why are restaurants getting more expensive in Austria?

Austria's June inflation is expected to be 8.7 percent, according to calculations by Statistics Austria - a record high in the country.

Cost of living: Why are restaurants getting more expensive in Austria?
The lettering "Cash only" can be seen above the menu of a restaurant in Vienna.(Photo by ALEX HALADA / AFP)

The inflation rate for June 2022 is expected to be 8.7 percent, the Statistics Austria institute calculated as part of a flash estimate.

Compared with the previous month, consumer prices rose by 1.4 percent, Statistics Austria said. This is the highest level since 1975 or almost 50 years.

The wave of inflation has affected mostly energy and food prices in Austria but has now also arrived in the gastronomy sector, with increasing costs in bars and restaurants in the country.

“Inflation has picked up speed in almost all areas. In addition to recent increases in fuel and heating oil prices, we also see significant increases in restaurant and food prices”, according to Statistics Austria Director-General Tobias Thomas.

READ ALSO: EXPLAINED: How Austria’s new finance measures could benefit you

The main culprits of rising food prices in retail and restaurants are the more costly energy and fuel prices. As transport and production become more expensive, these increases cascade to gastronomy as well.

Additionally, packaging and logistics costs have also increased, directly affecting food prices, the Handelsverband (trade association) said.

“The war in Ukraine and China’s zero-covid strategy continue to put a massive strain on global supply chains,” said Rainer Will, Managing Director of the Trade Association, in a press release.

“We do not expect inflation to peak until the end of the year.”

READ ALSO: The essential products that are getting more expensive in Austria

The association added that the Ukraine war also increased prices for agricultural raw materials and fertilisers, making food production and distribution more expensive.

What is next?

Rising costs have already reached other sectors, including rental prices, as The Local reported.

Austrian Post has also said that there will be price adjustments in the parcel sector “in the foreseeable future”, though they have added that these will be “very moderate”.

Criticism from the opposition

The SPÖ, FPÖ and the Neos accuse the government of doing too little against inflation.

“There is not even a draft law for the abolition of the cold progression,” criticised Neos economic and social spokesman Gerald Loacker. “The government’s one-off payments help little to nothing,” said SPÖ social spokesperson Josef Muchitsch.

READ ALSO: EXPLAINED: The main Austrian ‘tax traps’ foreigners should be aware of

FPÖ leader Herbert Kickl spoke of “failure to help”. “The ’emergency measures’ decided in the special session the week before do not even deserve the name – the first money will not flow until August 2022 at the earliest.”, he said.

The federal government has announced a broad package to help ease rising cost of living with one-off payments and the end of the so-called “cold progression” when tax brackets do not take into account inflation changes.

READ ALSO: When will you get your cost of living ‘bonus’ payments in Austria?

Cost of living calculation

The quick estimates of Statistik Austria are based on the existing database at the time of publication, which includes about 80 to 90 percent of the prices necessary for the inflation calculation.

There may, therefore, still be deviations. For example, the quick estimate of inflation for May was initially 8.0 percent, but the value was later revised downwards to 7.7 percent.

The index level of the consumer price index and further results for June 2022 will be announced on July 19th 2022.

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MONEY

Reader question: Why haven’t I received my Klimabonus in Austria yet?

Austria started paying €500 to every resident in the country in early September. But some people entitled to it still haven't received the payment. Here's why and what you can do about it.

Reader question: Why haven't I received my Klimabonus in Austria yet?

With rising inflation, the Austrian government announced several measures to try and cushion the effects of higher cost of living for those who live in the country. One of the most talked about measures is the so-called Klimabonus (officially, the full name would be something like “the climate and anti-inflation bonus”), the €500 one-off payment that every resident in the country is entitled to.

The Klimabonus is supposed to be straightforward: no need to apply for it, no long queues, no different criteria or different amounts depending on income. However, there are two rules: the recipient must live in Austria for six months in 2022, and minors receive half the amount.

READ ALSO: Reader question: I’ve received my Austrian Klimabonus as a voucher, now what?

The “easy” payments would be sent directly to the recipient’s bank account registered with FinanzOnline – those who do not have their data up to date would instead get a secure letter with Klimabonus vouchers that can be exchanged for money or used in hundreds of stores and supermarkets.

It hasn’t been that simple, though, as payments started on September 1st and many people still haven’t received their money. Here are some reasons why you might not have received your €500 payment yet.

READ ALSO: Why is Austria’s €500 climate bonus causing controversy?

You are not entitled to it

The first reason, of course, is if you are not entitled to the payment.

According to the federal government, “Everyone who has their main residence in Austria for at least 183 days in the year of entitlement receives the climate bonus – regardless of age or origin and citizenship.”

READ ALSO: Everything that changes in Austria in October 2022

This means you must have your primary residence for around six months in 2022 to receive the climate bonus this year. So if you moved this year and haven’t been here for that long, then you are not entitled to it – yet.

If you moved but are unregistered with the authorities here (in other words, you haven’t got your Meldezettel), then you are also not entitled.

You recently moved to Austria

Those who moved to Austria this year might also only get their payment next year. This is because the government uses the data from July 3rd to assess who has been in Austria for 183 days.

READ ALSO: Reader question: I recently moved to Austria, will I receive the ‘climate bonus’?

This means that if you moved in 2022 and have not been in Austria for 183 days on July 3rd, you’ll likely end up in the second payout round to be made at the end of the year.

The same is valid for babies born this year in Austria. As these people won’t show up as living in Austria for 183 days as of July 3rd, they should get their payment (the total amount, referring to 2022) only in early 2023.

(© The Local)

You are one of the last people to get it

There is another reason why you might not have gotten your payment: you’re just last in line for this first payment. The transfers are made daily but capped to a – technical – limit and are made randomly.

According to the Linz IT company Programmierfabrik, which programmed the database behind the system, the payments are ongoing. Managing director Wilfried Seyruck said: “We have been making 300,000 transfers every day since September 5th.

“Therefore, it will take us 25 days until all 7.4 million claimants have received the transfer. We should be finished by the end of the first week of October.”

READ ALSO: EXPLAINED: What is the ‘Vollmacht Klimabonus 2022’ letter everyone in Austria is receiving?

So, if you are getting your payment through a wire transfer to your bank account, it might take a bit longer. However, it might take even longer if you don’t have your updated information with Austria’s FinanzOnline authorities.

As the government stated when they announced the bonus, those who don’t have their bank accounts up to date will receive a voucher instead. There are about 1.2 million people in Austria in that situation.

In these cases, it can take until the end of October to arrive by secure mail – and then people will have to trade the voucher for cash.

You got unlucky

We can’t rule out that there might have been an error in your case. You can check your bank information on FinanzOnline to see if the data is up to date and correct.

If you haven’t gotten your transfer or a voucher by the end of October – and there has been no announcement of delays by the government -you can reach the Klimabonus service team on the phone.

The service is available in German, from Monday to Friday, from 8 am to 6 pm on 0800 8000 80.

As of early October, The Local has called the service and we were informed that people should end until the end of the month for their payments. 

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