Inflation remains a permanent work in progress

The sharp price increases in recent years have often dominated headlines and political debates. Even if the worst now seems to be over, the inflation rate should continue to be kept a close eye on.

There are still price increases in some areas that are often incomprehensible and which annoy consumers, for example in gastronomy, tourism or retail. In addition, there are government measures, such as when driving a car (CO₂tax), which also drive up the inflation rate.

The next government or the social partners must not repeat the mistakes of the black-green coalition by fueling inflation again (and increasing the deficit) through excessive funding or excessive wage agreements.

Civil service qualifications that are higher than the rolling inflation rate are a warning example here. According to Statistics Austria, inflation in Austria has been almost completely compensated for by wage and salary increases in recent years. And don’t forget: The USA, where inflation is back at 2.9 percent, will once again intensify trade wars under Donald Trump, which will also have an impact on prices.