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The essential products that are getting more expensive in Austria

Record inflation spikes have caused basic supermarket products to become more expensive in the alpine country.

The essential products that are getting more expensive in Austria
Prices are rising in Austrian supermarkets (Photo by ALEX HALADA / AFP)

Austria has been suffering from the high cost of living prices, and inflation for April is expected to reach 7.2 percent, according to a preliminary estimate by Statistik Austria.

Compared to the previous month, the price level is expected to rise by 0.3 percent, the federal statistics office said.

“Life in Austria continues to become noticeably more expensive. In addition to the continuing inflation-determining price increases for fuels and energy products, food also has an additional price-increasing effect,” said Statistik Austria Director-General Tobias Thomas.

READ ALSO: Austria unveils €2 billion relief package to fight the rising cost of living

The increases are very much reflected in supermarket prices.

According to Statistik Austria, oils and fats have had the highest price increases (13.3 per cent in a year on year comparison), followed by vegetable prices (9 per cent in a year on year comparison).

Bread and cereal prices were up by 7.2 per cent, and milk, cheese and eggs prices rose by 5.5 per cent.

Fruits have also been costing 4.7 per cent more in March 2022 than in March 2021. In addition, meat, which is already an expensive product for Austrians, has increased in price by 4.1 per cent.

There were also substantial price increases for non-alcoholic beverages, particularly coffee, which rose 12.3 per cent.

Why is inflation so high?

Prices are rising worldwide, not just in Austria. And much of it has to do with the Russian war on Ukraine, which brings up fuel prices and affects the entire supply chain of several products on supermarket shelves.

However, that is not the only factor.

READ ALSO: Will inflation force tax changes in Austria from 2023?

A special IHS Markit report on food inflation stated that the Russian invasion is just the most recent event exacerbating food inflation, especially as both countries are significant exporters of grains and vegetable oils.

Another factor for rising prices is competition with Chinese demand for feedstuffs such as soybeans, corn, sorghum, wheat and other grains.

Production and logistics issues have also impacted prices globally. For example, adverse weather in Brazil affected the production of corn, soybean, and even coffee.

In addition, transportation issues and even Covid-related labour shortages have also hindered production and logistics and increased prices.

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MONEY

EXPLAINED: How to get a refund for your Amazon subscription in Austria

If you are an Amazon Prime subscriber - or were before autumn 2022 - you are entitled to compensation due to what Austria's Chamber of Labour calls 'illegal price increase'. Here are the steps you need to take before September.

EXPLAINED: How to get a refund for your Amazon subscription in Austria

Austria’s Chamber of Labour, called the Arbeiterkammer (AK) has announced a settlement with Amazon that will entitle certain subscribers of the online retailing giant to a partial refund on their subscription.

What happened?

In September 2022, Amazon increased the prices for its Prime subscription. The AK found that the price increase clause, among other provisions it did not specify, was unlawful and filed a lawsuit.

Similarly to a previous case with Netflix price increases, the AK and Amazon agreed on compensation to consumers after “lengthy settlement negotiations”, the chamber said.

Anyone who took out a Prime subscription before fall 2022 and was affected by the price increase will get their money back or a voucher from Amazon.

READ ALSO: 8 things you should know before starting an office job in Austria

How much will I get? 

The claim amount depends on the membership’s type and duration. You will receive the entire price increase back without any deductions in the form of a credit note (Amazon voucher) or a refund to your bank account.

The highest amount will be for anyone who had an annual membership in July 2022 and is still a subscriber now. In this case, the person would be entitled to around € 36.50 for 21 months of the contract. 

How do I get it?

You must request a refund from Amazon Customer Service by September 11th at the latest. To do so, log in to your Amazon customer account and fill out the refund form “Prime Austria: Request for Refund.” 

Customers can then choose between a refund or an Amazon voucher for the same amount. According to the AK, the voucher is valid for ten years and can be redeemed for almost all Amazon services. 

You will receive confirmation of your registration from Amazon within three weeks of registering on the Amazon homepage; once your claim has been approved, the money will be credited to your bank account within another three weeks.

If you have opted for a refund in the form of a credit note (Amazon voucher), you will receive it within a few days of registering in your customer account.

READ ALSO: Can you pay your Austrian taxes using a foreign bank account?

Who is entitled to it?

As mentioned, you are entitled to repayment if you were affected by the September 15th, 2022 price increase. You must have been a client before that date and continued paying the higher amount. 

You also need to register by the deadline of September 11th. The settlement is only valid for clients in Austria. Even if you have already terminated your Prime membership, you will be refunded the price increase paid for the relevant period. 

Will I pay a lower membership fee from now on? 

No. When you fill out the refund form, you will be asked whether you wish to continue your Prime membership. If you want to remain a Prime customer, you agree to pay the higher price from now on. Alternatively, you can withdraw from the contract at the same time as claiming the refund.

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