Austrian Economic Upturn Remains Well On Track: ING
(RTTNews) - Austria's economic upturn remains well on track despite the ongoing government crisis, Inga Burk, an economist at ING-DiBa, said.
Official data released earlier this week showed that consumer price inflation accelerated to 2.1 percent in April from 1.9 percent in March.
"With the late timing of Easter, parts of the rebound stem from seasonal one-off effects, Burk said. A 28.5 percent rebound in airfares was one of the main drivers for inflation in April. Higher fuel prices and costs of restaurant and accommodation services also contributed to the acceleration in inflation.
Without the price effects from fuels and flight tickets, inflation would have come in at 1.6 percent in April, the economist noted.
"With inflation expected to be hovering around the 2 percent mark in the months to come, the strongest growth driver, private consumption, should weaken somewhat on the back of lower real wage growth," Burk said.