Warning of rising food prices despite falling fuel prices
Local authorities and experts in Austria have warned of a potential new wave of rising food prices, despite the government's announcement of measures to reduce fuel prices, as high energy costs are expected to reflect on product prices in stores in the coming period, according to the Austrian news agency APA.
These warnings come at a time when the government is preparing to implement what is known as the 'fuel price brake' starting from April 1, a step aimed at alleviating the burden on consumers by reducing gasoline and diesel prices. However, these measures may not be sufficient to prevent the impact of rising costs from transferring to other sectors, primarily the food sector.
Michaela Langer-Weninger, the agricultural official in Upper Austria, explained that the significant rise in energy prices, along with the high costs of fertilizers, will sooner or later be reflected in the prices of goods in supermarkets, noting that fertilizers alone now account for more than 30 percent of agricultural production costs, which puts significant pressure on farmers.
It was pointed out that production costs in agriculture, especially in the field of crops, have risen significantly, with financial burdens increasing by more than 150 euros per hectare due to rising fuel, energy, and fertilizer prices, making agricultural work under these conditions more economically challenging.
In contrast, the government is seeking to mitigate the effects of inflation by reducing fuel taxes by five cents per liter, which is expected to lead to an overall price decrease of about ten cents per liter, in an effort to support purchasing power and maintain economic balance.
Federal Chancellor Christian Stocker confirmed that the aim of these measures is to prevent the entrenchment of inflation, emphasizing that the state should not become a beneficiary of crises. Meanwhile, Deputy Chancellor Andreas Babler pointed out that the government will not allow excessive profits at the expense of citizens, with plans to impose restrictions on profit margins in the fuel distribution chain.
Despite these measures, experts believe that the impact may be limited and temporary, due to deeper factors affecting prices, such as ongoing global crises and rising agricultural production costs, which may ultimately lead to consumers bearing the final cost through higher food prices in the markets.