20.08.2021

Development of Food Prices in Austria

WIFO Research Brief on Current and Expected Assessments

For the current year 2021, food and beverage prices are expected to rise by 1.7 percent, although the price increase in the first half of the year was only 0.9 percent and inflation is expected to reach 2.5 percent in the second half of the year. For next year, an increase of 2.8 percent is forecasted (first half of 2022 +3.9 percent, second half of 2022 +1.8 percent).

The rapid economic recovery following the severe recession caused by the COVID-19 pandemic is showing frictions along important value chains. Due to bottlenecks in the transport system and because the supply of raw materials and agricultural goods cannot fully meet the rapidly rising demand, the prices of many goods have risen (in some cases very) strongly since the second half of 2020. Traditionally, food prices react with a certain delay to changes in the prices of agricultural commodities.