Inflation Rising, but Only Temporarily, Says National Bank

High raw material costs have pushed up inflation in Austria to 2.4 percent this year. However, it was expected to level off again in 2022 with 2.2 percent, said the Austrian National Bank (OeNB) in its inflation forecast on Wednesday.

This would still be higher than the European Central Bank (ECB) goal of two percent. The main drivers of inflation were the increased raw material costs, but problems in the delivery chains also drove prices up.

The OeNB already increased its inflation expectations for 2021 several times. In December 2020, 1.4 percent were expected. In April, the prediction rose to 1.7 percent, and then to two percent in June, and 2.2 percent in July.

For 2023, the bank expected inflation of 1.8 percent. This would predominantly be due to the decreases in energy prices. Without this effect, inflation would be two percent in 2023.

Reported in cooperation with the Austrian Press Agency / APA.