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Austrian central bank raises 2022 inflation forecast – Metro US

Austrian central bank raises 2022 inflation forecast

Austria’ Oesterreichische Nationalbank central bank building is seen in Vienna
Austria’ Oesterreichische Nationalbank central bank building is seen in Vienna

BERLIN (Reuters) – Austria’s central bank (OeNB) said on Wednesday it expects inflation in the country to rise in 2022 thanks to high energy prices and supply bottlenecks and only start dropping in 2023-2024.

Consumer prices, harmonised to make them comparable with data from other European Union countries (HICP), look set to rise to 3.2% in 2022 compared to 2.8% in 2021 but then decline to 2.3% in 2023 and 2.0% in 2024, OeNB said in a statement.

The central bank’s previous forecast from September 2021 was for 2022 inflation of 2.2%.

In 2021, HICP inflation in Austria rose from 1.5% in the first quarter to 3.9% in the fourth quarter, the highest level since the start of monetary union in 1999, and around two-thirds of that increase can be attributed to higher energy prices, OeNB said.

(Reporting by Zuzanna Szymanska, editing by Thomas Escritt)

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