Over half of Austrian households face disposable income crunch, survey shows

By Timo Kirez

GENEVA (AA) — More than half of Austrian households have seen their disposable income decline in the last three months, according to a new survey presented on Thursday.

About 1,100 people in Austria were surveyed for the analysis by the Johannes Kepler University Linz (JKU), showing that disposable budgets had risen for less than a tenth of the population in this time frame.

The results indicate that lower-income households in particular had to bear the brunt of the decline, the study authors wrote in a press release.

Among households with a monthly net income of €1,000-€2,000 (about $1,100-$2,210), 63% said their budget for purchases had decreased. For those with incomes over €5,000 ($5,533), this was true in just over one-third of all cases, with little difference among regions.

Experts do not see the situation easing in the near future. "An end to the reluctance to buy is not in sight. Because three quarters of Austrians expect prices to continue to rise," Ernst Gittenberger of the Austrian Institute for Trade, Sales and Marketing told public broadcaster ORF.

Austrian advocacy groups are calling for swift countermeasures in light of the surprising rise in inflation. The head of the Austrian Institute of Economic Research (WIFO), Gabriel Felbermayr, advocated an "open-ended reflection on interventions."

The Austrian Trade Union Federation (OGB) and the Chamber of Labor (AK) also urged the government to act.