The real inflation

Why Vienna costs more to live in than others

Expenses related to housing, in particular, continue to drive up prices in Vienna.

(Bild: APA/Barbara Gindl)

Inflation has finally fallen below the magical 2 percent mark again - but not for everyone: if you look at the details, you will find that some federal states are well below it, while others are well above it. Vienna is the unfortunate record holder.

For the European Central Bank, two percent inflation is the level at which there is no need to worry about price explosions and spiraling inflation. Austria has been below this level again since the beginning of fall. Both the consumer price index and the (European) harmonized consumer price index are at 1.8 percent price increase compared to the previous year. So why are the Viennese not noticing the easing in their wallets? Simple answer: because inflation is much higher here.