Austria unveils relief package to help inflation fight

18 May 2023

Austria’s government has unveiled a new relief package of €500 million aimed at vulnerable people coping with high inflation.

The government has underscored that families with children will particularly benefit from the relief package. People on unemployment benefits and receiving social assistance will have an additional €60 per child every month until the end of next year.

In addition, single parents earning less than €2,000 per month will also benefit from this monthly payment, as per Austrian broadcaster ORF. 

According to the country’s Social Affairs Minister Johannes Rauch at a press conference on Wednesday, families in Austria with children, particularly single mothers, have been impacted the most by inflation. 

The Minister also said on Twitter: “400,000 #Kinds and 200,000 adults benefit from today's package against #Poverty. We are investing 500 million euros in a targeted and noticeable way for those who need our help. In Austria, nobody should have to think about whether children get a warm lunch on the table.”

Furthermore, Statistics Austria said on Wednesday that inflation in the country increased from 9.2% in March to 9.7% in April as a result of ongoing price hikes for food, rents and household energy.

Indeed, housing, water and energy costs remain the key drivers of inflation in Austria, with a year-on-year rise of 14.7%. In this category, gas prices have risen by two-thirds. Hotels and restaurants throughout the country also reported a significant increase of close to 15%.

Austria’s inflation has remained elevated despite a decline in energy prices over the past few months.

Annual inflation in Austria stood at 9.6% in April, according to Eurostat the European Union’s statistics office, surpassing the EU average of 7%.