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COST OF LIVING

High inflation: What’s keeping prices high in Austria?

Inflation in the eurozone has been steadily going down, and while the inflation rate decreased slightly in Austria, it is still at high levels. So what is keeping prices high?

Published: 17 March 2023 13:33 CET
Pictured is a bag of groceries.
A bag of groceries. Photo by Maria Lin Kim on Unsplash

In February 2023, Austria’s inflation rate stood at 10.9 percent, a slight decrease from January, when it was 11.2 percent, according to recent Statistik Austria data.

It’s still higher than the average in the EU (9.9 percent) and much higher than the euro inflation, which was 8.5 percent in February, according to Eurostat.

“The slight decline in inflation from 11.2 percent in January to 10.9 percent in February 2023 is mainly attributable to less pronounced price pressure on household energy and fuels,” said Statistics Austria Director General Tobias Thomas.

READ ALSO: Cost of living: 45 ways to save money in Austria

“By contrast, the price spiral continued to turn in restaurants. Inflation also continued to be felt at supermarket checkouts, with food prices rising by 16.5 percent year-on-year,” he added.

So what is keeping prices high?

Higher costs for housing, water and energy (+16.5 percent compared to February 2022; including district heat +89.2 percent, gas +63.5 percent, solids fuels +76.0 percent, heating oil +29.3 percent, electricity +3.1 percent) turned out to be the most critical price driver, according to Statistik Austria. 

They were followed by food and non-alcoholic beverages (+16.2 percent; food +16.5 percent, non-alcoholic beverages +14,0 percent). 

The more expensive foods include meat, bread and cereal products, vegetables and fruit. However, products such as milk, cheese, eggs, oils, and fats have decreased slightly. When it comes to beverages, coffee was the main contributor to price rises this month. 

READ ALSO: EXPLAINED: 10 ways to save money on your groceries in Austria

The third strongest price driver was restaurants and hotels (+13.4 percent; restaurants +13.4 percent, hotels +13.1 percent). Finally, transport showed price increases of 10.9 percent (fuels +13.6 percent), with fuel prices still high and airline tickets costing significantly more than in January.

While rents rose by an average of 6.3 percent in February, less than the general inflation rate, the cost of maintaining housing increased by 17.9 percent, mainly due to high material costs (up 21.2 percent).

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COST OF LIVING

How to make sure you get Austria’s Klimabonus payout early this year

There are two ways of receiving Austria's Klimabonus payout: via wire transfer or by post and one of them is much faster than the other.

Published: 2 April 2024 11:15 CEST
How to make sure you get Austria's Klimabonus payout early this year

The Klimabonus (climate bonus) is a part of Austria’s eco-social tax reform, a set of measures to promote climate protection. One such action includes a tax on CO2 emissions, increasing fuel prices and affecting Austrian drivers. The annual Klimabonus aims to offset this expense. 

The concept is that individuals who rely more on public transportation and choose eco-friendly transportation options will have a more significant portion of the bonus remaining at the end of the month.

CO2 tax rising

Last year, Austrian residents received between €110 and €220 via the Klimabonus. The amount depended on the person’s primary residence and the local infrastructure. As explained above, those living in cities with more extensive public transport networks would receive less money, as they had more opportunities to make climate-conscious decisions. 

Now, the federal government said it would determine the amount “in early summer”, though Chancellor Karl Nehammer had already confirmed to Austrian media that the payout would take place for the third time in 2024. 

READ ALSO: What you can do if you still haven’t received Austria’s 2023 Klimabonus

Since the Klimabonus is linked to the CO2 taxes, which have seen a 38 percent increase, there have been calls for the payout to rise accordingly. That would make the payment between €150 and €300. 

Update your bank information

The Klimabonus is paid automatically to all eligible people. If your bank details are up to date with FinanzOnline, they will be wired directly to your account, making the process much easier and faster.

Those whose bank accounts are not stated on the government website still receive the payout as a voucher sent via secure letter. This means you must be at home to sign for it. You will then have to exchange the voucher for cash and, in some cases, might have to wait even weeks to receive the letter—after the government makes the wires.

All you need to do is have your bank details on FinanzOnline to receive your payout sooner. 

Once logged in to the website, you can change your personal information, including bank data, as a private person by clicking the “persönlichen Daten” link on the homepage. You can find that under “Weitere Services – Anträge – Grunddaten”, it is registered as a freelancer or company.

It’s worth pointing out that even though you need an IBAN, your bank account does not necessarily need to be an Austrian account. You can receive the payment straight in your SEPA bank account – including online banks such as N26 and Wise. 

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