Price increase for food: SPÖ demands energy price lids!

Price increase for food: SPÖ demands energy price lids!

Niederösterreich, Österreich - The current economic framework in Austria present many families with immense challenges. SPÖ-NÖ boss Sven Hergovich said that the massive price increases in food brought many households to their financial limits. The Chamber of Labor reports that staple foods such as rolls, butter and cheese have become up to 70 percent more expensive in the past two years. Many families now spend more than 600 euros a month on food, in addition to the increased living and energy costs, which, according to Hergovich, is no longer affordable for numerous households. The SPÖ therefore calls for an energy price lid for electricity, gas and district heating to reduce the loads. [OE24] reports that energy prices are the central price driver for food costs, since electricity prices have increased by 21.7 percent in the past six months and gas prices by 10.4 percent.

In the political debate, the topic of inflation is increasingly discussed. The Austrian Trade Union Confederation (ÖGB) then calls for the slogan "Prices down!" Measures against the financial crisis. The current situation is described as market failure, since high energy prices significantly increase consumer prices. However, this is not an inevitable phenomenon, but can be influenced by government measures. The Chamber of Labor and the ÖGB have developed a catalog of measures, which, among other things, provides for an energy price lid for households. [Working economy] emphasizes that the basic requirement of energy should remain affordable, while users should pay market prices for consumption beyond this need. The financing could be carried out by over -profit tax that has already been introduced in other countries such as England and Italy.

price increases in the food sector

The drastic price increases affect not only energy, but also food. According to estimates, families with two children have to spend around 810 euros more for food in 2022 than in 2021. In order to counter this, there are proposals to delete VAT on food and to set up a price commission that is intended to ensure that prices are reduced to companies. Mobility costs also play a role and are perceived as another price driver. Here, too, a reduction of taxes on fuel and the deletion of VAT on tickets for public transport is required. [Work-Economy] points out that the expansion of public transport should also be considered as part of a comprehensive concept.

Today's economic situation requires quick action. The statistical report on the producer prices of energy products offers an overview of price development. The data show that the price increases for energy types such as electricity, gas, diesel and heating oil further burden the cost of living. A constant increase in wholesale prices for electricity and gas of 247 percent and 323 percent compared to the previous year makes it clear how urgent measures are. [Destatis] documents these developments and warns of a possible doubling or tripling of energy prices from next autumn. Without effective measures, the affordability of basic living needs could be permanently at risk.