The Austrian government is feeling the heat of increasing public pressure to address high inflation rates, particularly in food prices. After a recent “food summit” with industry representatives failed to produce any meaningful results, the government is now planning to adopt new measures aimed at energy and food companies. The package is set to be adopted in the Council of Ministers on Wednesday, but the specifics of the measures were still unclear as of Tuesday evening.
Criticism has been directed at energy companies, which have been accused of making high profits while failing to pass on falling wholesale prices for electricity and gas to end customers. The government believes that energy prices are a lever that can be used to achieve an inflation-dampening effect, as they impact other sectors and their pricing. It is still unclear whether the government intends to intervene in the market, as wholesalers are typically six months ahead of end customer prices. The recent price increases therefore occurred at a time when wholesale trade was already going down again. However, these prices are expected to start decreasing for end customers in the coming weeks.
In addition to targeting energy companies, the government is also planning to take measures in the food sector to make food chains more responsible. Details of these measures have not yet been revealed.
The pressure on the Austrian government to address high inflation rates has been growing, and the failure of the recent “food summit” to produce any results has only added to this pressure. The new measures being planned are aimed at tackling the root causes of the problem, with a focus on energy and food companies. While the specifics of the measures remain unclear, the government’s goal is to achieve an inflation-dampening effect that will benefit not only consumers but also other sectors impacted by energy prices.
The government is facing mounting pressure to address the high inflation rate in Austria, which has been particularly problematic in the food sector. The hastily convened “food summit” with industry representatives failed to produce any tangible results, prompting the government to adopt new measures aimed at energy and food companies.
On Tuesday evening, the specifics of the measures were still unclear, but it was expected that they would target energy companies. The government has criticized energy companies for not passing on falling wholesale prices for electricity and gas to end customers while making high profits. Energy prices have been identified as a lever to achieve an inflation-dampening effect since they impact other sectors and their pricing.
However, it remains to be seen whether the government plans to intervene in the market. The situation with energy prices is that wholesalers are typically around six months ahead of end customer prices. This means that the increases in energy prices have already occurred at a time when wholesale trade was already going down again. As a result, the end customers are expected to see a decline in prices in the next few weeks anyway.
In addition to targeting energy companies, the government also plans to take measures in the food sector to make food chains more responsible. The exact details of these measures are yet to be revealed. The measures are expected to address the high food prices, which have been a major concern for consumers.
The inflation rate in Austria has been steadily rising since the beginning of the year, with food prices being a major contributing factor. Inflation has been further exacerbated by the global supply chain disruptions caused by the COVID-19 pandemic. The Austrian government has been under pressure to address the issue and has been criticized for not doing enough to alleviate the burden on consumers.
The measures adopted by the government are expected to have a significant impact on energy and food companies operating in Austria. The government hopes that the measures will help to alleviate the burden on consumers and bring inflation under control. However, it remains to be seen whether the measures will be effective and how they will be received by the affected companies.