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Austria's (Over)Inflation and Its Main Sources

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  • Stefan Schiman-Vukan

Abstract

Austrian inflation has again been significantly higher than euro area inflation since September 2022. Both domestic and external demand and supply shocks have contributed to this, reflecting the following circumstances: a later implementation of price-dampening measures than in the rest of the euro area, expansive fiscal policies, the resurgence of international tourism, and a delayed pass-through of the decline in wholesale energy prices. By contrast, wage shocks have so far not made a sustained contribution to the inflation (gap), although wage increases have recently been high.

Suggested Citation

  • Stefan Schiman-Vukan, 2023. "Austria's (Over)Inflation and Its Main Sources," WIFO Research Briefs 9, WIFO.
    • Handle: RePEc:wfo:rbrief:y:2023:i:9
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    References listed on IDEAS

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    1. Ambrogio Cesa-Bianchi & Andrea Ferrero, 2021. "The Transmission of Keynesian Supply Shocks," Discussion Papers 2116, Centre for Macroeconomics (CFM).
    2. Jonas E. Arias & Juan F. Rubio‐Ramírez & Daniel F. Waggoner, 2018. "Inference Based on Structural Vector Autoregressions Identified With Sign and Zero Restrictions: Theory and Applications," Econometrica, Econometric Society, vol. 86(2), pages 685-720, March.
    3. Stefan Schiman, 2021. "Die Rezession 2020: Österreich im Ländervergleich," WIFO Research Briefs 4, WIFO.
    4. Claudia Foroni & Francesco Furlanetto & Antoine Lepetit, 2018. "Labor Supply Factors And Economic Fluctuations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(3), pages 1491-1510, August.
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