Expert warns: Food prices are rising above the inflation rate

Expert warns: Food prices are rising above the inflation rate

According to a report by www.boerse-express.com, a current preview from the economic research institute Wifo shows that food prices will also rise sharply in Austria this year. Prices should be above the already above-average general inflation rate. The SPÖ is calling for the abolition of VAT on everyday foodstuffs based on the Spanish model and an anti-inflation commission that should ensure that price reductions also reach customers.

Wifo's forecast indicates continued increases in food prices. In 2022, prices had already become more expensive to an extent not seen in decades, and in 2023 they rose further by 11.5 percent. According to Wifo, a further increase of 5.25 percent is expected for 2024. This trend could have a negative impact on consumers' household budgets.

The SPÖ's demand for the abolition of VAT on everyday food and for price-cutting measures could have an effect on the market. A possible reduction in prices would reduce the financial burden on consumers and thereby increase purchasing power. However, such a measure could also have an impact on the profit margins of food companies.

Overall, the current development of food prices and the political discussion about price-cutting measures is an important topic for the financial sector. It is expected that further discussions and decisions in this matter will also have an impact on the financial market in Austria.