With the Iran war and the oil price shock, inflation in Austria has significantly increased. In March, the inflation rate was 3.2 percent, up from 2.2 percent in February. In the quick estimate, Statistics Austria had still expected 3.1 percent. The increase compared to February "is almost entirely due to the sharply increased fuel and heating oil prices," said the statistics authority on Thursday. However, the main driver of inflation remained services.

"The price pressure on food, on the other hand, eased somewhat in March," explained Statistics Austria Director General Manuela Lenk in a release. Without the price development of fuels and heating oil, inflation was at 2.3 percent.

Higher Oil and Gas Prices

The war of the USA and Israel against Iran, ongoing since the end of February, has driven up oil and gas prices. Iran has largely closed the Strait of Hormuz: a fifth of the global oil consumption is transported through this strait. This causes shortages, which is why world market prices have risen.

(APA/Red)

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